Question
Please develop a P&L statement. This division manufactures light fixtures sold to consumers through home-improvement and hardware stores. Cost of goods sold represents 40% of
Please develop a P&L statement. This division manufactures light fixtures sold to consumers through home-improvement and hardware stores.
Cost of goods sold represents 40% of net sales.
Marketing expenses include selling expenses, promotion expenses and freight.
Selling expenses include sales salaries totalling 3 million per year and sales commissions (5% of sales).
The company spent 3 million on advertising last year, and freight costs were 10% of sales.
Other costs include 2 million for managerial salaries and expenses for the marketing function and another 3 million for indirect overhead allocated to the division.
1. Develop the P&L statement if net sales were 20 million last year.
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