Answer:                         
Explanation:
1.                                     Jasper Company
                                       Income Statement
                                                                                          
             Sales (280000 x $12)                                  $3360000
             <u>Less: Cost of goods sold</u>
             Add: Direct Material                   $180000
             Add: Direct Labor                       $505000
             Add: Manufacturing Overhead  <u>$110000</u>
             Cost of goods sold                                      <u>($795000)</u>
             Gross Profit                                                  $ 2565000
            <u>Less: Expenses</u>
            Selling expense                           $437000
            Administrative expense              <u>$854000</u>
           Total expenses                                               <u>($1291000)</u>
           Net income                                                     <u> $1274000</u>
Percentage of sales for each line item
Sales = 100%
Cost of goods sold:  x 100= 23.7%
 x 100= 23.7%
Selling expense :  x 100 = 13%
 x 100 = 13%
Administrative expense:  x 100 = 25.4 %
 x 100 = 25.4 %
2. According to the income statement in requirement 1, the manager can control cost by outsourcing the product if it is cheaper to get it from a third party in order to cut/control cost of goods sold.
Manager can also try controlling the administrative expenses as they are taking a bigger proportion than any other cost/ expense.