If Best Buy wishes to evaluate each of its product lines, how can it allocate its operating expenses to each of them to determine each product line’s profitability?


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If Best Buy wishes to evaluate each of its product lines, how can it allocate its operating expenses to each of them to determine each product line’s profitability?


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Review Best Buy’s income statement in Appendix A and identify its revenues for the years ended March 3, 2007, February 25, 2006, and February 26, 2005. For the year ended March 3, 2007, Best Buy reports the following product revenue mix. (Assume that its product revenue mix is the same for each of the three years reported when answering the requirements.)  Required 1. Compute the amount of revenue from each of its product lines for the years ended March 3, 2007, February 25, 2006, and February 26, 2005. 2. If Best Buy wishes to evaluate each of its product lines, how can it allocate its operating expenses to each of them to determine each product line’s profitability?