Answer:
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New Ventures Enterprises Inc.
Income Statement
Sales $565,000
<em>Cost of goods sold</em>
Variable manufacturing cost $100,000
Direct labor cost $150,000
Fixed manufacturing cost <u>$52,500</u>
Total cost of goods sold <u>$302,500</u>
Gross Profit $262,500
<em>Operating Expenses</em>
Selling and administrative <u>$74,000</u>
Operating profit $188,500
Income tax expenses at 15% <u>$28,275</u>
Net Income <u>$160,225</u>