Instructions Jasper Company provided the following information for last year: Costs Amount Sales in units 290,000 Selling price $13 Direct materials $150,000 Direct labor $504,000 Manufacturing overhead $110,000 $437,000 Selling expense Administrative expense $860,000 Last year, beginning and ending inventories of work in process and finished goods equaled zero. Required: 1. Prepare an income statement for Jasper for last year. Calculate the percentage of sales for each line item on the income statement. Round percentages to the nearest tenth of a percent. 2. CONCEPTUAL CONNECTION: Briefly explain how a manager could use the income statement created for Requirement 1 to better control costs. Labels and Amount Descriptions Refer to the list below for the exact wording of a label or an amount description within your income statement Labels Add For the Last Year For the Next Year Less Amount Descriptions Administrative expense Cost of goods manufactured Cost of goods sold Gross profit Operating income Operating loss Sales revenue Selling expense Income Statement 1. Prepare an income statement for Jasper for last year. Calculate the percentage of sales for each line item on the income statement. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your income statement. Be sure to complete the statement heading. Round percentages to the nearest tenth of a percent. Jasper Company Income Statement (Label) Sales & Expenses Percent of Sales 5 (Label) Conceptual Connection 2. CONCEPTUAL CONNECTION: Briefly explain how a manager could use the income statement created for Requirement 1 to better control costs. . The income statement showing each account as a percentage of sales helps focus managerial attention on those expenses that are relatively For Jasper, it appears as though is significantly larger. Identify action(s) management could take to reduce this expense. Check all that apply. Buy more raw materials at year-end Eliminate some sales personnel Minimize the size of their legal staff Reduce research and development expenditures