1. The disadvantages or weaknesses to the company’s format are as fol-
lows:
a. The company should include a column showing the combined results
of the three regions taken together.
b. Additional columns showing percentages would be helpful in assess-
ing performance and pinpointing areas of difficulty.
c. The regional expenses should be segregated into variable and fixed
categories to permit the computation of both a contribution margin
and a regional segment margin.
d. The corporate expenses are probably common to the regions and
should not be arbitrarily allocated.
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