16.3 Highjinks Corporation's sales department has estimated revenue of $2,250,000 for East Division. 60% of this will he achieved in the first half year and 40% in the remaining half year. Variable operating costs are typically 30% of revenue and fixed operating costs are expected to be $35,000 per month for the first six months and 40,000 per month thereafter. The selling expense recharged from the sales department to East Division is $15,000 per month for the first half year, thereafter $12,000. Salaries are $25,000 per month, depreciation is $5,000 per month and council rates $3,000 per month. Light, heat and power are expected to cost $3,000 per month for the first half year, falling to $2,000 thereafter