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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 $10. The publishing company's most recent monthly income statement is given below: Product Line Total Handy Travel Company Cookbook Guide Speller Sales 335,000 $104,000 164,000 67,000 Expenses Printing costs 109,000 34,000 63,700 11,300 Advertising 43,000 14,200 23,000 5,800 General sales 20,100 6,240 9,840 4,020 Salaries 40,000 25,000 9,700 5,300 Equipment depreciation 7,800 2,600 2,600 2,600 Sales commissions 33,500 10,400 16,400 6,700 General administration 44,100 14,700 14,700 14,700 13,400 4,160 6,560 2,680 5,100 1,700 1,700 1,700 Warehouse rent Depreciation-office facilities Total expenses 316,000 113,000 148,200 54,800 19,000 (9,000) 15,800 12,200 Net operating income (loss)
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