Time-To-See Company began operations in January 2011 with two operating (selling) departments and one service (office) department. Its departmental income statements follow.

TIME-TO-SEE COMPANY Departmental Income Statements For Year Ended December 31, 2011
		Clock			Mirror		Combined
Sales	$	140,000		$	105,000		$	245,000
Cost of goods sold		68,600			65,100			133,700
Gross profit		71,400			39,900			111,300
Direct expenses
Sales salaries		20,000			7,500			27,500
Advertising		2,200			300			2,500
Store supplies used		1,100			300			1,400
DepreciationEquipment		1,700			600			2,300
Total direct expenses		25,000			8,700			33,700
Allocated expenses
Rent expense		7,070			3,720			10,790
Utilities expense		3,000			2,100			5,100
Share of office department expenses		12,500			8,500			21,000
Total allocated expenses		22,570			14,320			36,890
Total expenses		47,570			23,020			70,590
Net profit	$	23,830		$	16,880		$	40,710