For a recent year, McDooley's, a family-owned group of restaurants, had the following sales and expenses: Line Item Description Amount Amount Sales by company-operated restaurants $346,000 Food and paper $95,340 Payroll and employee benefits 82,800 Occupancy and other expenses 71,720 Selling, general, and administrative expenses 47,700 Other operating expenses (income) 20,760 Net operating expenses (318,320) Operating income (loss) $27,680 Assume that the variable costs consist of food and paper, payroll and employee benefits, and 40% of the selling, general, and administrative expenses