Allstar Exposure designs and sells advertising services to small, relatively unknown companies. Last month, Allstar had sales commissions costs of $48,000, technology costs of $80,000, and research and development costs of $210,000. Selling expenses were $10,000, and administrative expenses equaled $35,000. Sales totaled $500,000.

Required: 1. Prepare an income statement for Allstar for the past month.

2. Briefly explain why Allstars income statement has no line item for Cost of Goods Sold.