Refer to P17.8.

Assume that management decides to drop the marketing text.

Required:

A. Determine the net income of the company.

B. Determine the product margins of the accounting and management texts.

C. Analyze your results.

Marketing Management $500,000 Accounting Total Sales Less expenses $400,000 $900,000 $1,800,000 Printing Commissions Warehousing Salaries Depreciation 1 Depreciation 2 Miscellaneous Advertising Shipping 160,000 40,000 48,000 34,000 36,000 24,000 34,000 8,000 48,000 200,000 50,000 48,000 34,000 36,000 24,000 34,000 8,000 60000 6,000 360,000 90,000 48,000 34,000 36,000 24,000 34,000 8,000 108,000 $158,000 720,000 180,000 144,000 102,000 108,000 72,000 102,000 24,000 216,000 $ 132000 Net income (loss)