Expand Your Critical Thinking 18-02 The condensed income statement for the Crane and Paul partnership for 2020 is as follows. Crane and Paul Company Income Statement For the Year Ended December 31, 2020 | Sales (300,000 units) | | | | $1,500,000 | | Cost of goods sold | | | | 960,000 | | Gross profit | | | | 540,000 | | Operating expenses | | | | | | Selling | | $350,000 | | | | Administrative | | 195,000 | | | | | | | | 545,000 | | Net loss | | | | $(5,000 | ) | A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable. |