Please develop a P&L statement. This division manufactures light fixtures sold to consumers through home-improvement and hardware stores.

Cost of goods sold represents 40% of net sales.

Marketing expenses include selling expenses, promotion expenses and freight.

Selling expenses include sales salaries totalling 3 million per year and sales commissions (5% of sales).

The company spent 3 million on advertising last year, and freight costs were 10% of sales.

Other costs include 2 million for managerial salaries and expenses for the marketing function and another 3 million for indirect overhead allocated to the division.

1. Develop the P&L statement if net sales were 20 million last year.