Streeterville Foods, Inc., has recently purchased a small mill that it intends to operate as one of its subsidiaries. The newly acquired mill has three products that it offers for salewheat cereal, pancake mix, and flour. Each product sells for $10 per package. Materials, labor, and other variable production costs are $4.60 per bag of wheat cereal, $5.80 per bag of pancake mix, and $3.40 per bag of flour. Sales commissions are 10% of sales for any product. All other costs are fixed.

The mills income statement for the most recent month is given below:

Please help?! So Confused!

Problem 6-26B Segmented Income Statements LO6-4] Streeterville Foods, Inc., has recently purchased a small mill that it intends to operate as one of its subsidiaries. The newly acquired mill has three products that it offers for sale-wheat cereal, pancake mix, and flour. Each product sells for $10 per package. Materials, labor, and other variable production costs are $4.60 per bag of wheat cereal, $5.80 per bag of pancake mix, and $3.40 per bag of flour. Sales commissions are 10% of sales for any product. All other costs are fixed The mill's income statement for the most recent month is given below: Product Line Wheat Pancake Total Company Cereal Mix Flour Sales $1,080,000 $360,000 $460,000 $260,000 Expenses Materials, labor, and other Sales commissions Advertising Salaries Equipment depreciatio Warehouse rent General administration 520,800 165,600 266,800 88,400 108,000 36,000 46,000 26,000 157,640 70,000 56,000 31,640 18,600 36,000 54,000 8,000 23,000 13,000 9,200 5,200 66,000 22,000 22,000 22,000 106,600 52,000 18 21,600 7,200 Total expenses 1,034,640 370,800 441,600 222,240 Net operating income (loss) S 45,360 $(10,800) S 18,400 S 37,760