Harold Mcwilliams Owns and manages a general merchandise store in rural area Virginia. Harold sells appliance, clothing, auto parts, and farming equipment, among a wide variety of other types of merchandise. Because of normal seasonal and cyclical fluctuations in the local economy, he knows that his business will also have these flutuations, and he is planning to use CVP analysis to help him understand how he can expect his profits to change with these flutuations. Harold has the following information for his most recent year. Costs of goods sold represents the cost paid for the merchandise he sells, while operating costs represent rent, insurance, and salaries, which are entirely fixed.