Division A B C D Sales $530,000 $490,000 $950,000 $720,000 Cost of goods sold 500,000 375,000 620,000 440,000 Selling, general, and administrative expenses 120,000 160,000 260,000 190,000 Operating income/loss $(90,000) $(45,000) $70,000 $90,000 Further analysis of costs reveals the following percentages of variable costs in each division: Division A B C D Cost of goods sold 91 % 89 % 90 % 75 % Selling, general, and administrative expenses 61 % 75 % 75 % 65 %