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Immersive Reader Opel Sales $1.221.500 Cost of goods sold Direct material $410.000 Indirect production (allocated based on machine hours) 60.000 470 000 Gross profit 751.500

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Immersive Reader Opel Sales $1.221.500 Cost of goods sold Direct material $410.000 Indirect production (allocated based on machine hours) 60.000 470 000 Gross profit 751.500 Selling and administrative expenses: Commissions 73,900 Distribution to warehouses (allocated based on weight in kilograms) 135.000 208.900 Income before unallocated expenses 542.600 Unallocated expenses Corporate salaries 10.000 Other general expenses 17.000 27.000 Operating income before taxes $ $15.600 Cambridge Tool uses a traditional cost accounting system. Operating data used in the cost accounting system are as follows: Scooter Lawn Hand Tool Parts Mower Parts Parts Purchase cost of parts assembled $145.000 $175,000 $90.000 Machine hours 8.950 1650 1.400 Weight of parts shipped to distributors 60.000 505.000 1 10.000 (kilograms) Sales commissions per unit $ 430 $ 1.DO $ 0.40 Units assembled and sold 7.000 21.000 57,000 Sales price per unit $ 80.00 16.30 $ 5.60 You have been asked to determine operating income (loss) for each product line. Use a format similar to Exhibit 4-3 on p. 130

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