Coronado Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of $2,500$ kits was prepared for the year. Fixed operating expenses account for $65\%$ of total operating expenses at this level of sales.

$\backslash$table$[[$Sales$,$$$,275,000],[$Cost of goods sold $($all variable$),,268,800],[$Gross margin,,$6,200],[$Operatiitg expenses,,$28,350],[$Operating income,$$,-22,150$