1. Develop a profit-and-loss statement for the Westgate division of North Industries. This division manufactures light fixtures sold to consumers through home improvement and hardware stores. Cost of goods sold represents 25% of net sales. Marketing expenses include selling expenses, promotion expenses, and freight. Selling expenses include sales salaries totaling $6 million per year and sales commissions (4% of sales). The company spent $5 million on advertising last year, and freight costs were 4% of sales. Other costs include $3 million for managerial salaries and expenses for the marketing function and another $2 million for indirect overhead allocated to the division.
   1. Develop the profit-and-loss statement if net sales were $30 million last year.
   2. Develop the profit-and-loss statement if net sales were $50 million last year.
   3. Calculate Westgates breakeven sales.