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Problem - Alexa Cole owns a business called Alexa's Bakery. She has divided her business into two departments: breads and pastries. The following information is provided for the fiscal year ended June 30, 20--:
Breads
Pastries
Net sales
$172,000
$119,000
Cost of goods sold
92,400
60,500
Wages expense
30,000
20,000
Advertising expense
11,000
8,000
Other operating expenses
21,000
14,000
Required -
1. Prepare an income statement showing departmental operating income and total operating income.
2. Calculate departmental operating expense and operating income percentages. (Round percentages to one decimal place.)
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