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 Travel Handy Company Cookbook Guide Speller Sales $ 335,000 $104,000 $ 164,000 $ 67,000 Expenses: Printing costs Advertising General sales Salaries Equipment depreciation Sales commissions General administration Warehouse rent Depreciationoffice facilities 109,000 43,000 20,100 40,000 7,800 33,500 44,100 13,400 5,100 34,000 14,200 6,240 25,000 2,600 10,400 14,700 4,160 1,700 63,700 23,000 9,840 9,700 2,600 16,400 14,700 6,560 1,700 11,300 5,800 4,020 5,300 2,600 6,700 14,700 2,680 1,700 Total expenses 316,000 113,000 148,200 54,800 Net operating income (loss) $ 19,000 $ (9,000) $ 15,800 $ 12,200 The following additional information is available about the company: a. Only printing costs and sales commissions are variable; all other costs are fixed. The printing costs (which include materials, labor, and variable overhead) are traceable to the three product lines as shown in the statement above. Sales commissions are 10% of sales for any product. b. The same equipment is used to produce all three books, so the equipment depreciation cost has been allocated equally among the three product lines. An analysis of the company's activities indicates that the equipment is used 25% of the time to produce cookbooks, 45% of the time to produce travel guides, and 30% of the time to produce handy spellers. c. The warehouse is used to store finished units of product, so the rental cost has been allocated to the product lines on the basis of sales dollars. The warehouse rental cost is $3 per square foot per year. The warehouse contains 53,600 square feet of space, of which 8,600 square feet is used by the cookbook line, 25,400 square feet by the travel guide line, and 19,600 square feet by the handy speller line