BROADENING YOUR PERSPECTIVE BROADENING YOUR MANAGEMENT DECISION-MAKING Decision-Making Across the Organization BYP1-1 Wendall Company specializes in producing fashion outfits. On July 31, 2017, a tornado touched down at its factory and general office. The inventories in the warehouse and the factory were completely destroyed as was the general office nearby. Next morning, through a careful search of the completely destroyed as was the general office nearby. Next morning, throug disaster site, however, Bill Francis, the company's controller, and Elizabeth Walton, the cost accoun- tant, were able to recover a small part of manufacturing cost data for the current month "What a horrible experience," sighed Bill "And the worst part is that we may not have enough records to use in filing an insurance claim." "It was terrible," replied Elizabeth. " However, I managed to recover some of the manufactur- ing cost data that I was working on yesterday afternoon. The data indicate that our direct labor cost in July totaled $250,000 and that we had purchased $365,000 of raw materials. Also, I recall that the amount of raw materials used for July was $350,000. But I'm not sure this information will help. The rest of our records are blown away." Well, not exactly," said Bill. "I was working on the year-to-date income statement when the tornado warning was announced. My recollection is that our sales in July were $1,240,000 and our gross profit ratio has been 40% of sales. Also, I can remember that our cost of goods available for sale was $770,000 for July