Swift Company was organized on March 1 of the current year. After five months of startup losses management had expected to earn a profit during August, the most recent month. Management was disappointed, however, when the income statement for August also showed a loss. August's income statement follows SWIFT COMPANY Income Statement For the Month Ended August 31 $ 490,000 Sales Less: Operating expenses Indirect labour cost Utilities Direct labour cost Depreciation, factory equipment Raw materials purchased Depreciation, sales equipment Insurance Rent on facilities Selling and administrative salaries Advertising $ 14,400 16,000 62,000 23,000 189,000 18,000 3,400 47,000 40,000 86,700499,500 Net loss $ (9,500) The company's controller resigned a month ago. Sam, a new assistant in the controller's office, prepared the income statement above. Sam has had little experience in manufacturing operations. After seeing the $9,500 loss for August, Swift's president stated, I was sure we'd be profitable within six months, but our six months are up and this loss for August is even worse than July's. I think it's time to start looking for someone to buy out the company's assets-if we don't, within a few months there won't be any assets to sell. By the way, I don't see any reason to look for a new controller. We'll just limp along with Sam for the time being Additional information about the company follows: a. Some 70% of the utilities cost and 70% of the insurance apply to factory operations. The remaining amounts apply to selling and administrative activities