I'm confused on how to do this problem, especially when calculating the rent and labor rates.

I tried looking at similar questions, but they didn't explain how they got the decimals.

Chapter 1 Cost Accounting: Information for Decision Making 1-54. Cost Data for Managerial Purposes-Finding Unknowns (LO 1-3) Miller Cereals is a small milling company als is a small milling company that makes a single brand of cereal. Recently, a business school intern recon intern recommended that the company introduce second cereal in order to diversify the Product portfolio." Currently, the company shows an onerating profit that is 20 percent of sales. With the single product other costs were twice the cost of rent. The intern estimated that the incremental profit of the new cereal would only be 25 percent of the incremental revenue, but it would still add to total profit On his last day, the intern told Miller's marketing manager that his analysis was on the company laptop in a spreadsheet with a file name, New Product.xlsx. The intern then left for a 12-month walkabout in the outback of Australia and cannot be reached When the marketing mana per opened the file it was corrupted and could not be opened. She then found an early (incomplete) copy on the company's buckup server. The incomplete spread- sheet is shown as follows. The marketing manager then called a cost management accountant in the controller's office and asked for help in reconstructing the analysis. Required As the management accountant, fill in the blank cells. MILLER CEREALS Projected Income Statement for One Year Status Quo: Single Product % Increase (Decrease) 40% Alternative: Two Products $ (b) Difference $60,000 Sales revenue $ (a) 40,000 60,000 60,000 (k) (m) 20% 50% Costs Material. Labor Rent.... Depreciation........... Utilities...................... Other... Total costs. Operating profit............ (9) 8,000 (n) 8,000 5,000 fo) (P) 1,000 iv) (h) $ (d)