Expand Your Critical Thinking The condensed income statement for the Pharoah and Paul partnership for 2020 is as follows. Pharoah and Paul Company Income Statement For the Year Ended December 31, 2020 Sales (250,000 units) Cost of goods sold Gross profit Operating expenses Selling Administrative $1,250,000 800,000 450,000 $250,000 206,250 Net loss 456,250 $(6,250) 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.