Exercise 8-19 Luis Herrera, an up-and-coming fashion designer, created a new line of men's fashion socks in response to the growing number of celebrities who are expressing their individuality by replacing traditional navy and black socks with brighter colors and bold patterns. At a sales price of $9.90 per pair, Luis estimates monthly sales volume will be 21,300 pairs. Variable product costs will be $6.35 per pair and we overhead will be $1.70 per pair. Half of the foved overhead is directly traceable to the new sockline. To promote the socks, Herrera proposes a $0.50 per pair commission to the company's salespeople and a $10,800 per month advertising campaign. In compliance with corporate policy, the socies will also be allocated $23.400 in fixed corporate support costs. Your answer is partially correct. Try again. preceding the number eg.-45 or parentheses Prepare a traditional monthly income statement for the proposed sock line. (Enter negative amounts e.g. (45).) Luis Herrera Monthly Income Statement Sales revenue ! Cost of goods sold Variable Foxed Gross margin T Operating expenses Corporate support 0 Advertising Commissions D T LILULATOR PRINTER VERSION BACK NEXT Commissions Operating income / (loss) LINK TO TEXT LINK TO VIDEO Your answer is partially correct. Try again. Prepare a monthly income statement that highlights the proposed sock line's segment margin. (Enter negative amounts using either a negative won preceding the number or parentheses e.g. (45).) Luis Herrera Monthly Income Statement T Sales revenue T Variable expenses Commissions Cost of goods sold ! Contribution margin Traceable fixed expenses Advertising Cost of goods sold Monthly Income Statement Sales revenue Variable expenses Commissions T Cost of goods sold 0 Contribution margin : Traceable fixed expenses : Traceable Advertising Cost of goods sold T Segment margin LINK TO TEXT Your answer is correct. Which income statement would you recommend that Luis use when pitching the proposed sock line to company managers? Segment Margin Income statement