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This is one question with multiple parts Diversified Products, Inc., has recently acquired a small publishing company that offers three books for sale -a cookbook,
This is one question with multiple parts
Diversified Products, Inc., has recently acquired a small publishing company that offers three books for sale -a cookbook, a travel guide, and a handy speller. Each book sells for $13. The publishing company's most recent monthly income statement is given below: Product Line Total Travel Handy Company Cookbook Guide Speller $350,000 $110,000 $170,000 $70,000 Sales Expenses: Printing costs Advertising General sales Salaries Equipment depreciation Sales commissions General administration 112,000 37,000 64,000 11,000 46,000 14,50024,500 7,000 21,000 6,600 10,200 4,200 43,000 22,500 10,000 10,500 8,700 2,900 2,900 2,900 35,000 11,00017,000 7,000 45,000 15,00015,00015,000 6,8002,800 6,0002,000 2,000 2,000 14,000 4,400 Depreciation- office facilities Total expenses 330,700115,900 152,400 62,400 Net operating income (loss) $ 19,300 (5,900) 17,600 $ 7,600 Step by Step Solution
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