A company has two departments, Kids and Adults. The company's most recent monthly contribution format income statement follows:

Department Total Kids Adults Sales $4,200,000 $3,000,000 $1,200,000 Variable expenses 2.000,000 1,500.000 500,000 Contribution Margin 2,200,000 1,500,000 700,000 Fixed Expenses 2 200,000 1,300,000 900,000 Net operating Income (loss) 200,000 (200,000)