Arnall Ltd., a British merchandising company, is the exclusive distributor of a product that is gaining rapid market acceptance. The company's revenues and expenses (in British pounds) for the last three months are given below: Arnall Ltd Comparative Income Statements For the Three Months Ended June 30 April May June Sales in units 1,200 4,500 6,100 204,000 98,400 765,000 1,037,000 500,200 Sales revenue 369,000 Cost of goods sold Gross margin Selling and administrative expenses 105,600 396,000 536,800 Shipping expense Advertising expense Salaries and commissions Insurance expense Depreciation 26,900 47,000 84,600 8,000 30,300 63,200 47,000 243,000 8,000 30,300 80,800 47,000 319,800 8,000 30,300 expense Total selling and administrative expenses 196,800 391,500 485,900 Net operating income (loss) (91,200) 4,500 E 50,900