Ira Toyota had the following data for the year's operations: a (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. ' V Net income $ 0 $ 534,000 * Roughly equivalent to contribution margin Requirement 2. Prepare an alternative operating statement that would reect a different view of the dealership operations. Assume that $20,000 and $168,000 of the $230,000 general overhead can be allocated with condence 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. Parts and Service Vehicles Total Data table Sales 0\" \"saws Sales of vehicles 2,700,000 Parts and sen/ice materials Sales of parts and service 400,000 Parts and semce labor Cost of vehicle sales 1,755,000 Sales commissions Parts and service materials 120,000 Subtotal of costs Parts and service labor 160,000 Markup on variable material and labor' Parts and service overhead 40,000 Parts and service overhead General dealership overhead 230,000 Advertising Advertising of vehicles 140,000 Sales salaries Sales commissions, vehicles 81,000 Direct allocation of general overhead Sales salaries, vehicles 401000 Departmental contribution to net income General overhead not allocable Net income of the dealership as a whole = - " Roughly equivalent to contribution margin