Bonanza Entertainment began operations in January 2015 with two operating (selling) departments and one service (office) department. Its departmental income statements follow.

Benarrza Entertalnment began cperatiens in January EU'IE wlth twc eperating [selllngfi departments and see senrice [cfflce] department- Its departmental lnceme statements fellew. HID-HA HIA EHT ETlHH FHT Dr'qmrtnwnt .r.| Irlt'l''l't-l-I Etatl'e1iH1t'I. Fn-r Tear [nuke-cl December 3|.1EII5 H-rr'rist Vrde-rr Emir-1. Crime-Intel m M mm H- it: ............................ 31m ISM]:I 51;\" \"I.\" .............................. l1\" \".5\" will!!! tllltl ....................... m rm 5m BumEm: ................. 4.5m Hill Tull m\" . . . . . m m m Alum-II we\" Ill-Ip ............................ tl I.\" I.\" m [wily-II ......................... I.\" Lilli HIM he ri ell:- w "I\" ......... H M m Ted lewd-jinn ................... M m M 'Fe Ip ............................ g Ea\"! HIE Mum-en: -------------------------- g. Ira M L The cernpanjr plans te epen a third department In January- EIJ'IE that wIII sell cempact dlscs. Management predicts that the new department will generate sari-eerie in sales wlth a 35st. grew prcflt margin and will require the Icllewlng direct expenses: sales satarles. 51 ease; adeertislng. $1 D: stere supp-ties, same; and egulprnent depreclatlen. $1.33]. The campantr wIII t the new department intc the current rented space by taking same square teetage frem the ether tee departments. II.|'|.I'hen epened. the new cernpact dlsc department will ll eneufeurth at the space preseme used by the rnctrie department and cne-third cf the space used by the 1.rldee game department. Management dees net predict any Increase in utlt'rtles caste whlch are allecated tn the departments in prepertlcn te cccupled space [er rent expense}. The cerhpany ailecates eftlce department expenses Ie the cperating departments In prcpertien te thelr sales. It expects the cernpact dlsc department as increase tetal ettlce department expenses by 511ml}. Slnce the crxhpact disc department wIII brlng new custemers inte the stere. management expects sales In beth the mettle and uldee game departments te increase by 3%. He changes fer these departments' grcss prctlt percents er Ier thelr direct expenses are expected. except fer stere supplles used. which will Increase in prepcrtien te sales. Ftequlred Prepare departmental lnceme statements that shew the cen'p-anfs predlcted results at cperatiens fer calendar year 2015 fer the three eperatlng tselllng} departments and their eembirbed tetais- (Fleund percents te the nearest ens-tenth and dellar arneu nts te the nearest whele detlar.) Check ENE feremsted l'i'le'ries net ineems [sales]. Sadat-EU [Edd-IND)