College Accounting: P25-9A Durwood Thomas operates the Business Thomas Security
College Accounting P25-9A Income Statement With Departmental Direct Operating Margin and Total Operating Income. Durwood Thomas operates the Business Thomas Security that sells security equipment for commercial property and residential homes. The following information is provided for the year ended December 31, 20-. Commercial Residential Homes Net sales 465,000 135,000 Cost of goods sold 279,250 54,000 Direct operating expenses: Advertising expense 35,000 20,000 Store clerk's wages expense 30,000 18,000 Truck drivers' wages expense 15,000 15,000 Bad debt expense 3,000 8,000 Depreciation expense delivery equipment 6,000 4,000 Other operating expenses 20,000 10,000 Indirect operating expenses: Store clerks' wages expense 10,000 Advertising expense 15,000 Store rent expense 20,000 Other operating expenses 10,000 Required: 1. Prepare an income statement showing department direct operating margin and total operating income. 2. Calculate department direct operating margin percentages.
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