Keep the counter Eliminate the counter Sales Revenues Less: Variable expenses Direct Material Direct Labor 500,000 180,000 120,000 Variable Overhead 150,000 Contribution margin 50,000 Less: Fixed expenses Depreciation of counter 10,000 equipment Supervisory salaries 20,000 Insurance 15,000 Depreciation of building 8,000 10,000 (allocated) General overhead (allocated)ican Colle (13,000) the Middle East, 2 Net loss