Diversified Products Inc., owns a small publishing company. It has two books it offers for sale - a cookbook and a travel guide Diversified wants to know how each book is doing. The following information was prepared by the Accounting Department for the period in which the publishing company lost $5,000: 4 Sales Variable expenses as a percentage (%) of sales Traceable fixed expenses Travel Guide Cookbook $90,000 $150,000 52% 40% $48,100 $57,500 6 7 8 Required: 1. Prepare a segmented income statement, using the contribution approach and proper format. (11 marks). Round percentages to 1 decimal, i.e. 1.5. Enter any losses as a negative number with a minus sign in front, i.e.-10. 9 10 11 12 13 Total Company Amount Cookbook Amount % Travel Guide Amount % % 5 6 7 SI V7 New 2. Calculate the breakeven point in total sales dollars. (2 marks). Round to the nearest dollar following the proper rules for rounding breakeven. 23 25 26 3. If the company could spend an additional $20,000 in advertising to promote sales, which product should be promoted and 27 why? (2 marks) 28 29 Product: 30 Reason: 1 SI V7 New