Create the profit-and-loss statement for Westgate division of North Industire. This division makes light fixtures sold to consumers through home improvement and hardware stores. Cost of goods sold represents 40% of net sales. Marketing expenses comprise selling expenses, promotion expenses, and freight. Selling expenses comprise sales salaries totaling $3 Million per year and sales comissions (5% of sales). Company spent $3 million on adertising last year, and freight costs were 10% of sales. Other costs comprise $2 million for managerial salaries and expenses for marketing function and another $3 million for indirect overhead allocated to division.
i) Create profit-and-lost statement if net sales were $20 million last year.
ii) Create profit-and-lost statement if net sales were $40 million last year.
iii) compute Westgate's break-even sales.