1. Best Buy has a total of common fixed expenses of $145,520. In addition, it has two segments in the company: the television segment and the phone segment. The sales for the Television segment are $600,000, and the sales for the phone segment are $725,000. Regarding costs, the Television department has $205,500 in variable expenses and $135,600 in traceable fixed expenses, while the Phone department has $234,200 in variable expenses, and $102,500 in traceable fixed expenses. Please calculate the companys net operating income.

1. $364,700

2. 501,300

3. $501,680

4. 634,200