Jalapeno Company provided the following information for last year: Sales in units 280,000 Selling price P 12 Direct materials 180,000 Direct labor 505,000 Manufacturing overhead 110,000 Selling expense 437,000 Administrative expense 854,000 Last year, beginning and ending inventories of work in process and finished goods equaled zero. Required: 1. Prepare an income statement for Jalapeno for last year. (5 pts.) 2. Briefly explain how a manager could use the income statement created in Requirement 1 to better control costs. (5 pts.)