Would a traditional income statement differ depending on whether the business

Part 1Question 1: Would a traditional income statement differ depending on whether the business is a service organization, merchandiser, or manufacturer?Question 2: Could we use managerial accounting tools to assess the profitability of an organization other than a manufacturing business, or are the topics that we are learning only related to manufacturing?Question 3: If we could use these concepts in service and merchandising businesses, how would we go about doing so?Part 2Question 1: Explain how shaving 5% off the estimated direct labor-hours in the base for the predetermined overhead rate usually results in a big boost in net operating income at the end of the fiscal year.Question 2: Should Cristin Madsen go along with the general manager’s request to reduce the direct labor-hours in the predetermined overhead rate computation to 105,000 direct labor-hours?Question 3: How would managerial accounting tools help the user make decisions proactively?

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