Julia and John are two friends that formed a partnership which will start operations at the end of 2021. They are going to sell a type of cosmetics product. For 2022 their condensed budgeted income statement is as follows: JUNIPER LTD Budgeted Income Statement Year Ending December 31, 2022 Sales (495,000 units) $ 2,722,500 Cost of goods sold $ 2,350,000 Gross Profit $ 350,000 Operating Expenses Selling $ 450,000 Administrative $ 125,000 Operating Loss $ (202,500) According to their analysis: 1) 55% of the cost of goods sold is variable (the rest is fixed cost) 2) 35% of the selling expenses is variable (the rest is fixed cost) 3) 50% of the administrative expenses is variable (the rest is fixed cost)