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Diversified Products, Inc., has recently acquired a small publishing company that offers three books for sale -a cookbook, a travel guide, and a handy speller.
Diversified Products, Inc., has recently acquired a small publishing company that offers three books for sale -a cookbook, a travel guide, and a handy speller. Each book sells for $15. The publishing company's most recent monthly income statement is given below: Product Line Travel Handy Total Company Cookbook Guide Speller 325,000 $100,000 160,000 65,000 Sales Expenses Printing costs 107,000 32,000 63,500 11,500 Advertising 41,000 14,000 22,000 5.000 General sales 19,500 6,000 9,600 3,900 Salaries 38,000 23,000 9,500 5,500 Equipment depreciation 7,200 2,400 2.400 2,400 Sales commissions 32,500 10,000 16,000 6,500 General administration 43,500 14.500 14.500 14,500 Warehouse rent 4,000 13,000 6.400 2,600 Depreciation-office facilities 4,500 1,500 1.500 1.500 Total expenses 306.200 107,400 145.400 53,400 18,800 (7,400) 14,600 11,600 Net operating income (loss)
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