Table 2 Income Statement for Product A (1000s)
Sales (40 million lbs. @ 50 cents/lb) $20,000
less:
Materials $8,000
Direct labour $2,000
Manufacturing overhead $2,200
Cost of Goods Sold $12,200
Gross Margin $7,800
less:
Advertising $800
Promotion $200
Field Sales $3,200
Product Management $50
Marketing Management $300
Product Development $300
Marketing Research $150
General and Administrative $1,400
Total Expenses $6,400
Net Profit Before Taxes $1,400
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