you have been asked to determine operating income (loss) for each product line. use a format similar to exhibit 4-3 on p 130

4-BI Direct, Indirect, and Unallocated Costs Cambridge Tool Co. is a supplier that assembles purchased parts into components for three distinct markets parts, lawn mower parts, and hand tool parts. Following is the statement of operat ing income for the most recent period: Cambridge Tool: Statement of Operating Income Total $1,221,500 Sales Cost of goods sold $410,000 Direct material 470,000 60,000 Indirect production (allocated based on machine hours) 751,500 Gross profi Selling and administrative expenses: Commissions 73,900 208,900 Distribution to warehouses (allocated based on weight in kilograms) 135,000 542,600 Income before unallocated expenses Unallocated expenses Corporate salaries 10,000 Other general expenses 17,000 27,000 515,600 Operating income before taxes