Total direct expenses 34,750 24,600 59,350 Allocated expenses Rent expense 9,750 5,250 15,000 3,575 1,925 5,500 Utilities expense Share of administrative office expenses 18,000 12,000 30,000 Total allocated expenses 31,325 19,175 50,500 Total expenses 66,075 43,775 109,850 Net income 41,025 9,425 50,450 Carryit, Inc. began selling men's messenger bags starting January 2020. Management predicted the following for 2020: The messenger bags would generate $ 120,000 in sales. The gross profit margin for the messenger bags would be 55%. Direct expenses for the messenger bags department would be: o sales salaries, $20,000; o advertising, $950; o store supplies, $350; o equipment depreciation, $250; The company would fit the new inventory into the current rented space by taking some square footage currently used to display the other two products. Total direct expenses 34,750 24,600 59,350 Allocated expenses Rent expense 9,750 5,250 15,000 3,575 1,925 5,500 Utilities expense Share of administrative office expenses 18,000 12,000 30,000 Total allocated expenses 31,325 19,175 50,500 Total expenses 66,075 43,775 109,850 Net income 41,025 9,425 50,450 Carryit, Inc. began selling men's messenger bags starting January 2020. Management predicted the following for 2020: The messenger bags would generate $ 120,000 in sales. The gross profit margin for the messenger bags would be 55%. Direct expenses for the messenger bags department would be: o sales salaries, $20,000; o advertising, $950; o store supplies, $350; o equipment depreciation, $250; The company would fit the new inventory into the current rented space by taking some square footage currently used to display the other two products