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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. Each
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 $16. The publishing company's most recent monthly income statement is shown below Product line Total Travel Handy Company Cookbook Guide Speller $375,000 $145,000 $178,000 $ 52,000 Sales Expenses: 2,000 1,500 Printing costs Advertising General sales Salaries Equipment depreciation Sales commissions General administration Warehouse rent Depreciation-office facilities 122,000 47,000 52,000 31,000 8,700 37,000 19,500 3,900 37, 500 14,500 45,600 15, 200 5, 800 73,000 19,500 10,680 13,100 3,900 17,800 15,200 7,120 22,500 3,120 4,400 3, 900 5,200 15, 200 2,080 11,700 15,000 9,000 3,00e 3,00e 3,000 Total expenses 352, 300 148,600 163,300 40,400 Net operating income (loss) 22,700 $ (3,600) $ 14,700 $ 11,600 The following additional information is available
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