(i only need the income statement completed) please complete the table below:

Koontz Company
Income statement
	Total	Basic	Advanced
Sales	$5,000,000	$3,000,000	$2,000,000
Variable expenses:
Direct materials	1,400,000	800,000	600,000
Direct labor	900,000	600,000	300,000
Sales commissions	350,000	150,000	200,000
Total variable expenses		1,550,000	1,100,000
Contribution margin	2,350,000	1,450,000	900,000
Traceable fixed expenses:
Advertising	350,000	150,000	200,000
Machining
Assemble and pack
Order processing
Setups
Total traceable fixed expenses		150,000	200,000
Segment margin		$1,300,000	$700,000
Common fixed expenses:
Selling and administrative	500,000
Total common fixed expenses	850,000
Net operating income	$(850,000)

required information:

Koontz Company manufactures two models of industrial componentsa Basic model and an Advanced Model. The company considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor-hours. Koontzs controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars):

	Basic			Advanced			Total
Number of units produced and sold		20,000			10,000		30,000
Sales	$	3,000,000		$	2,000,000	$	5,000,000
Cost of goods sold		2,300,000			1,350,000		3,650,000
Gross margin		700,000			650,000		1,350,000
Selling and administrative expenses		720,000			480,000		1,200,000
Net operating income (loss)	$	(20,000	)	$	170,000	$	150,000

Direct laborers are paid $20 per hour. Direct materials cost $40 per unit for the Basic model and $60 per unit for the Advanced model. Koontz is considering a change from plantwide overhead allocation to a departmental approach. The overhead costs in the companys Molding Department would be allocated based on machine-hours and the overhead costs in its Assemble and Pack Department would be allocated based on direct labor-hours. To enable further analysis, the controller gathered the following information:

	Molding			Assemble and Pack			Total
Manufacturing overhead costs	$	787,500		$	562,500	$	1,350,000
Direct labor-hours:
Basic		10,000			20,000		30,000
Advanced		5,000			10,000		15,000
Machine-hours:
Basic		12,000			-		12,000
Advanced		10,000			-		10,000

Using a departmental approach:

Using your departmental overhead cost allocations, redo the controllers segmented income statement (continue to allocate selling and administrative expenses based on sales dollars).

3. Koontzs production manager has suggested using activity-based costing instead of either the plantwide or departmental approaches. To facilitate the necessary calculations, she assigned the companys total manufacturing overhead cost to four activity cost pools as follows:

Activity Cost Pool	Activity Measure	Manufacturing Overhead
Machining	Machine-hours in Molding	$	417,500
Assemble and pack	Direct Labor-Hours in Assemble and Pack		282,500
Order processing	Number of customer orders		310,000
Setups	Setup hours		340,000
		$	1,350,000