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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 Property		Residential Homes
Net sales	$464,800		$134,100
Cost of goods sold	279,100		54,400
Direct operating expenses:
Advertising expense	35,300		20,500
Store clerks wages expense	29,900		18,200
Truck drivers wages expense	14,900		14,900
Bad debt expense	7,700		3,050
Depreciation expensedelivery equipment	6,050		3,750
Other operating expenses	20,000		10,300
Indirect operating expenses:
Store clerks wages expense		$10,500
Advertising expense		15,300
Store rent expense		19,800
Other operating expenses		9,900

Required: 1. Prepare an income statement showing departmental direct operating margin and total operating income. Thomas Security Income Statement For the Year Ended December 31, 20-- Commercial Residential Total Property Homes Net sales Cost of goods sold Gross profit Direct operating expenses: Advertising expense Store clerks' wages expense Truck drivers' wages expense Bad debt expense Depreciation expense-delivery equipment Other operating expenses Total direct operating expenses Departmental direct operating margin Indirect operating expenses: Store clerks' wages expense Advertising expense Store rent expense Other operating expenses Total indirect operating expenses 100 Q10 Operating income 2. Calculate departmental direct operating margin percentages. Round your answers to one decimal place. Commercial property direct operating margin percentage % Residential homes direct operating margin percentage %