In: Accounting
First part of question. Second will come through now.
Diversified Products, Inc., has recently acquired a small publishing company that offers three books for sale—a cookbook, a travel guide, and a handy speller. Each book sells for $10. The publishing company’s most recent monthly income statement is shown below.
Product Line |
||||||||||||||||||
Total |
Cookbook |
Travel |
Handy |
|||||||||||||||
Sales |
$ |
300,000 |
$ |
90,000 |
$ |
150,000 |
$ |
60,000 |
||||||||||
Expenses: |
||||||||||||||||||
Printing costs |
102,000 |
27,000 |
63,000 |
12,000 |
||||||||||||||
Advertising |
36,000 |
13,500 |
19,500 |
3,000 |
||||||||||||||
General sales |
18,000 |
5,400 |
9,000 |
3,600 |
||||||||||||||
Salaries |
33,000 |
18,000 |
9,000 |
6,000 |
||||||||||||||
Equipment depreciation |
9,000 |
3,000 |
3,000 |
3,000 |
||||||||||||||
Sales commissions |
30,000 |
9,000 |
15,000 |
6,000 |
||||||||||||||
General administration |
42,000 |
14,000 |
14,000 |
14,000 |
||||||||||||||
Warehouse rent |
12,000 |
3,600 |
6,000 |
2,400 |
||||||||||||||
Depreciation—office facilities |
3,000 |
1,000 |
1,000 |
1,000 |
||||||||||||||
Total expenses |
285,000 |
94,500 |
139,500 |
51,000 |
||||||||||||||
Net operating income (loss) |
$ |
15,000 |
$ |
(4,500 |
) |
$ |
10,500 |
$ |
9,000 |
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Please see the url, for the second part of the question.
https://www.chegg.com/homework-help/questions-and-answers/second-part-question-following-additional-information-available-printing-costs-sales-commi-q38920042?trackid=jHh8sqog
I am not sure, but did you get the information for the second part of the question?