Fancy Glassware is a producer of heirloom quality glassware. The company has a solid reputation and is widely regarded as a model corporate citizen. Your friend began working for the company last year as a financial analyst and has recently begun to question the company's squeaky-clean image. Because you graduated with an accounting degree from a well-regarded university, your friend has asked you to look over

Fancy Glassware's income statement and answer a few questions.

The income statement appears as follows: Fancy Glassware Inc. Statement of Income For the Year Ended October 31, 2011 Sales Revenue 12.008.450 Cost of Goods Sold 8,475.361 Gross Profit 3,533,089 Selling and Administrative expenses 1,845,902 Net Operating Profit 1,687,187 Your friend also asked that you look over the following supplementary schedule: Fancy Glassware Inc. Statement of Income For the Year Ended October 31, 2011 Indirect labor 743.012 Supplies 41,950 Advertising 210.375 Equipment depreciation 96.210 Factory depreciation 32.900 Factory Insurance 22.420 Property taxes 18.600 Utilities 27,100 Management salary allocation 194.800 Total Manufacturing overhead 1,387.367