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--:

REQUIRED
1. Prepare an income statement showing departmental direct operating margin and total operating income.
2. Calculate departmental direct operating marginpercentages.

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Commercial Residential Property Homes Net sales $465,000 279,250 $135,000 Cost of goods sold Direct operating expenses: Advertising expense Store clerks' wages expense Truck drivers' wages expense Bad debt expense Depreciation expense-delivery equipment Other operating expenses 54,000 35,000 30,000 15,000 8,000 6,000 20,000 18,000 15,000 3,000 4,000 10,000 20,000 Indirect operating expenses: Store clerks' wages expense Advertising expense Store rent expense Other operating expenses $10,000 15,000 20,000 10,000