Dibene Company is a manufacturer of computers. Its controller resigned in October 2012. An inexperienced assistant accountant has prepared the following income statement for the month of October 2012. DIBENE COMPANY Income Statement For the Month Ended October 31, 2012 Sales (net) $1,014,000 Less: Operating expenses Raw materials purchases $343,200 Direct labor cost 247,000 Advertising expense 117,000 Selling and administrative salaries 97,500 Rent on factory facilities 78,000 Depreciation on sales equipment 58,500 Depreciation on factory equipment 40,300 ndirect labor cost 36,400 Utilities expense 15,600 Insurance expense 10,400 1,043,900 Net loss ($29,900) Prior to October 2012, the company had been profitable every month. The company