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Unfocused Books is the discount retail bookshop which has three departments: fiction, non-fiction and children's books. Sales and cost of the sales for each department are shown below. Additionally, each department has its own fixed costs for the staffing and takes a one-third share of rental and management costs for Bookshop as an overall.

 

Fiction

Non-Fiction

Children's

Sales

250,000

100,000          

75,000

Cost of sales

45%

50%

55%

Departmental costs

50,000

35,000

35,000

Shared fixed costs

30,000

30,000

30,000

Total

87,500 profit

$5,000 profit

-$11,250 profit

What is profitability of the Unfocused Books' three departments and what suggestions would you make to owners?

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Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M914121

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