Frankel Ltd., a British merchandising company, is the exclusive distributor of a product that is gaining rapid market acceptance. The company's revenues and expenses (in British pounds) for the last three months are given below: Frankel Ltd Comparative Income Statements For the Three Months Ended June 30 ril 1,900 May 3,100 June Sales in units 4,650 Sales revenue 330,600 539,400 809,100 311,550 127,300 207,700 Cost of goods sold Gross margin Selling and administrative expenses: 203,300 331,700 497,550 42,400 69,900 Shipping expense Advertising expense Salaries and commissions Insurance expense Depreciation expense 56,800 69,900 113,500 162,700 9,300 41,800 75,400 69,900 226,250 9,300 41,800 9,300 41,800 Total selling and administrative expenses 276,900 340,500 422,650 Net operating income (loss) (73,600) (8,800) 74,900