Ira Toyota had the following data for the year's operations: (Click the icon to view the data.) The president of the dealership has long regarded the markup on material and labor for the parts and service activity as the amount that is supposed to cover all parts and service overhead plus some general overhead of the dealership. In other words, the parts and service department is viewed as a cost-recovery operation, while the sales of vehicles is viewed as the income-producing activity. Net income *Roughly equivalent to contribution margin 534,000 Requirement 2. Prepare an alternative operating statement that would reflect a different view of the dealership operations. Assume that $20,000 and $168,000 of the $230,000 general overhead can be allocated with confidence to the parts and service department and to sales of vehicles, respectively. The remaining $42,000 cannot be allocated except in some highly arbitrary manner. Sales Cost of sales Parts and service materials Parts and service labor Sales commissions Subtotal of costs Markup on variable material and labor* Parts and service overhead Advertising Sales salaries Direct allocation of general overhead Departmental contribution to net income General overhead not allocable Net income of the dealership as a whole *Roughly equivalent to contribution margin Parts and Service Vehicles Total Data table - X Sales of vehicles $ 2,700,000 Sales of parts and service 400,000 Cost of vehicle sales 1,755,000 Parts and service materials 120,000 Parts and service labor 160,000 Parts and service overhead 40,000 General dealership overhead 230,000 Advertising of vehicles 140,000 Sales commissions, vehicles 81,000 Sales salaries, vehicles 40,000 Print Done