Using comparative net income analysis MarJo Manufacturing Inc., wishes to determine the...

Using comparative net income analysis

MarJo Manufacturing Inc., wishes to determine the profitability of its products and asks the cost accountant to make a comparative analysis of sales, cost of sales, and distribution costs of each product for the year. The accountant gathers the following information, which will be useful in preparing the analysis:

Advertising expenses total $600,000 for the year, with an equal amount expended to advertise each product. The sales representative’s commission is based on the selling price of each unit and is 10% for Product X, 14% for Product Y, and 18% for Product Z. The sales manager’s salary of $75,000 per year is allocated evenly to each product. Other miscellaneous selling and administrative expenses are estimated to be $15 per order received.

Prepare an analysis for MarJo Manufacturing Inc., that will show in comparative form the income derived from the sale of each product for the year.