INCOME STATEMENT WITH DEPARTMENTAL DIRECT OPERATING MARGIN AND TOTAL OPERATING INCOME Tom Peterson owns the business Peterson's Furniture and Appliances. 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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Furniture Appliances Department Department Net sales $390,000 $810,000 Cost of goods sold Direct operating expenses: Advertising expense Store clerks' wages expense 234,000 405,000 30,000 40,000 60,000 90,000 Appliances Department Furniture Department Truck drivers' wages expense Bad debt expense Depreciation expense-delivery equipment Other operating expenses $65,000 9,000 8,000 50,000 $35,000 4,000 4,000 15,000 Indirect operating expenses: Store clerks' wages expense Advertising expense Store rent expense Other operating expenses $20,000 15,000 50,000 25,000