3 of 3 < > 1.22/2 William is the owner of a software company where approximately two-thirds of sales are from new software installations. The remaining revenues come from upgrading previous installations or performing repairs for his software clients. To date, he has evaluated these business lines using only gross margin percentages. With the ever-increasing support costs needed, though, William wants to assign these support costs to each business line as well. This will give him a better sense of how each business line helps to cover the company's total costs. Sales and cost information is as follows, along with William's proposed cost driver usage information. Total New Install Upgrade/Repair Sales revenue $157,500 $105,000 $52,500 Cost of services 78,750 47,250 31,500 Quantity of Cost Driver Support Activity Cost Cost Driver New Install Upgrade/Repair Administrative $20,200 Administrative hours 780 230 Marketing/advertising 9,350 Number of campaigns 10 7 Executive 25,500 Staff hours 530 320 Other 9,400 Split evenly 50% 50% (c) Calculate operating income and profit margin percentage for each business line and for the company overall. (Round profit margin percentage to 2 decimal places, e.g. 15.25%. Enter loss using either a negative sign preceding the number e.g. -5,145 or -45% or parentheses e.g. (5,145) or (45) %.) New Installation Operating income $ Profit margin percentage eTextbook and Media: Save for Later 5 Upgrade/Repair % Total Attempts: 0 of 3 used Submit