Magic Machines sells two products — domestic and commercial. The store’s statement of financial performance for the year ending 30 June 2025 has been prepared from the accounting records.

Required

(a) Prepare a departmental statement of financial performance for the year ending 30 June 2025 that shows the departmental contribution for each department.

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Income Sales MAGIC MACHINES Statement of financial performance for the year ended 30 June 2025 Cost of sales: Beginning inventory Purchases Goods available for sale Ending inventory Cost of sales Gross profit Expenses Sales salaries Advertising Depreciation $ 142 000 510 000 652 000 98 600 431 250 74 000 62 000 $ 1590 000 553 400 1 036 600 Managerial salaries Rent Utilities Sundry expenses Total expenses Profit 140 000 88 700 20 000 64 000 879 950 $ 156 650 The company's records indicate that the following percentages of each expense or revenue account are directly chargeable to the departments. (Any balance left in an expense account after allocation of direct charges is treated as an indirect expense.)