Empire Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020. EMPIRE COMPANY Income Statement For the Month Ended October 31, 2020 Sales revenue $793,400 Less: Operating expenses Raw materials purchases $264,400 Direct labor cost 188.100 Advertising expense 92,800 Selling and administrative salaries 76,700 Rent on factory facilities 61,100 Depreciation on sales equipment 45,600 Depreciation on factory equipment 32,400 Indirect labor cost 29,000 Utilities expense 12,000 Insurance expense 8,800 810,900