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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 TravelHandy Company Cookbook GuideSpeller $360,000 $114,000 $ 165,000 81,000 Total Sales Expenses Printing costs Advertising General sales Salaries Equipment depreciation Sales commissions General administration Warehouse rent Depreciation-office facilities 114,000 39,000 64,200 10,800 48,000 14,700 25,500 7,800 21,600 6,840 9,900 4,860 45,000 20,000 10,200 14,800 9,300 3,1003,100 3,100 36,000 11.400 16,500 8,100 45.600 15,200 15,200 15,200 6,6003,240 6,600 2,200 2.200 2.200 14,4004,560 Total expenses 340,500 117.000 153,400 70,100 Net operating income (loss) $ 19,500 $ (3.000) S 11,600 $ 10,900
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