Create an operating income statement A firm of lawyers offering one-stop resolution of legal problemshas three types of cases: Regular, Difficult, and Extra Difficult. The firm is organized into departments. Each department is responsible for one of the case types. General firm-wide corporate fixed costs include costs that are unavoidable as long as the firm remains in business. In addition, each department also has some direct fixed costs, including costs of support staff employed within each of the departments. The firms total fixed costs are shown below, along with other information for Year 1:

a) Using the above mix of cases, prepare the companys operating income statement for Year 1, using a multi-product contribution margin format. Include but do not allocate corporate fixed costs.

Variable Fee per Cost per Cases per Year Fixed Costs ($) 500,000 700,000 1,000,000 365,000 2,565,000 Year 1 Regular Department Difficult Department Extra Difficult Department Corporate Total Case ($) 3,000 4,000 5,000 Case ($) 1,800 2,200 2,500 1,000 400 600 2,000