u.mneducation.com Student Tab:mywcc: Waubonsee Community College Connect ACCOUNTING r Six Homework Question 2 (of 4) value: 6.00 points 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 per bag of wheat cereal, $6.10 per bag of pancake mix, and $3.10 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 Total Wheat Company Cereal Pancake Mix Flour $1,170,000 $390,000 $490,000 $290,000 Sales Materials, labor, and other Sales commissions Advertising Salaries Equipment depreciation Warehouse rent General administration 579,900 191,100 298,900 89,900 117,000 39,000 49,000 29,000 156,050 73,000 50,000 33,050 98,500 43,300 10,200 45,000 58,500 19,500 24,500 14,500 9,800 5,800 84,000 28,000 28,000 28,000 23,400 7,800 Total expenses 1,117,350 401,700 470,400 245,250 Net operating income (loss) S 52,650 $(11,700) $19,600 $ 44,750