Bobbi Ford Retailing, Inc., operates three stores between Fort Myers and Naples. A segmented absorption costing income statement for the company for the last quarter is given below: Bobbi Ford Retailing, Inc. Income Statement For the Quarter Ended September 30 North East South Total Store Store Store $3,900,000 $820,000 $1,560,000 $1,520,000 Sales Cost of goods sold 836,000 829,000 2,145,000 480,000 Gross margin 731,000 684,000 1,755,000 340,000 Selling and administrative expenses: 319,500 275,100 Selling expenses: 835,000 240,400 164,400 148,600 Administrative expenses 428,000 115,000 Total expenses 483,900 423,700 1,263,000 355.400 Net operating income (loss) 492,000 (15,400) 247,100 260,300