Question One: (15 marks) Jimmy White designs and manufactures a variety of personal products including wallets, purses, and key chains. J immy is proposing to begin manufacturing smart phone covers which sell for $25 each. J immy estimates that monthly sales volume will be 8,500 units. Variable product costs will be $15.50 per unit and xed overhead will be $5.20 per unit. Half of the xed overhead is directly traceable to the smart phone cover line. To promote the covers, J immy proposes a $1.25 per unit commission to the company's salespeople and a $7,500 per month advertising campaign. In compliance with corporate policy, the smart phone cover line will also be allocated $15,000 in xed corporate support costs. Required a. Prepare a traditional monthly income statement for the smart phone cover line. (6 marks) b. Prepare a monthly income statement that highlights the proposed smart phone cover line's segment margin. (6 marks) c. Which income statement would you recommend that J immy use when pitching the proposed line to company managers? Why would you recommend she use this statement