ACC 212 Challenge #8 2017 departmental in ent has two operating departments. come statement data was as follows: Video Games $320,000 2017 Movies Sales Gross Profit % 30% Direct expenses: Variable: Sales Salaries Advertising Store Supplies 7.5% of Sales 2.0% of Sales O 60% of Sales Fixed Movies Video Games 500 1,900 e company plans to open a third department in 2018 that will sell compact discs. Management predicts that the new department will generate $220,000 in sales with a 35% gross profit rate. Since the compact disc department will bring new customers into the store, nagement expects sales in both the movie and video game departments to increase by 10%. Management does not expect the variable direct expense percentages to change and es timates the depreciation for the compact disc department will be $2,300. Management ns to allocate shared expenses as follows: Allocated expense Cost Allocation Base Rent Utilities expense Departmental support 50,000 square footage ,000 square footage 85,000 Sales Square Footage (round to 1 decimal place) Movies Department Video Games Department Compact Discs Department 21,600 47,700 180,000 Total Estimated Sales (round to whole number) Movies Department Video Games Department Compact Discs Department Total Use the data above to prepare a budgeted income statement for the 201 round all amouhts to whole dollars 8. Unless otherwise noted, 91