Jasper Company provided the following information for last year:

Sales in units 280,000

Selling price $ 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. Make an income statement for Jasper last year. Calculate the percentage of sales for each line item on the income statement. (Note: 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.