J Concord, Ltd. is a local coat retailer. The store's accountant prepared the following income statement for the month ended January 31: Sales revenue Cost of goods sold Gross margin Operating expenses Selling expense $ 24,260 Administrative expense 50,560 Net operating income $ 763,000 549,360 213,640 74,820 $ 138,820 Concord sells its coats for $250 each. Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales. Sales Revenue Variable Expenses Cost of Goods Sold 549,360 Selling Expense 24,260 Administrative Expense 38150 Total Variable Expenses Contribution Margin Total Fixed Expenses Selling Expense Administrative Expense Total Fixed Expenses Operating Income 3052 $ 763000 250 180 7.95 12.50 611770 200.45 117.80