Discuss the below:
Q: INCOME STATEMENT WITH DEPARTMENTAL GROSS PROFIT AND OPERATING INCOME Bacon and Hand Distributors has divided its business into two departments: retail sales and wholesale sales. The following information is provided for the year ended December 31, 20--:
Net sales, retail sales department ............................$570,000
Net sales, wholesale sales department ........................830,000
Cost of goods sold, retail sales department ..................319,200
Cost of goods sold, wholesale sales department ............398,400
Warehouse wages expense .....................................110,000
Truck drivers' wages expense ...................................90,500
Advertising expense ..............................................70,000
Warehouse lease expense ........................................40,000
Depreciation expense-delivery equipment ...................12,000
Other operating expenses .......................................130,000
REQUIRED
Q1. Prepare an income statement showing departmental gross profit and total operating income.
Q2. Calculate departmental gross profit percentages.