Mitch's Markets, Inc., operates three stores in a large metropolitan area. The company's segmented absorption costing income statement for the last quarter is given below. Mitch's Markets, Inc. Income Statement For the Quarter Ended March 31 Uptown Downtown West Loop Store Store $2,926,000 1,300,000 $780,000 846,000 Sales Cost of goods sold 466,700 1,629,200 728,000 434,500 572,000 313,300 Gross margin 296,800 411,500 Selling and administrative expenses: Selling expenses Direct advertising 135,400 48,100 54,600 32,700 20,600 General advertising 9.200 5,600 5,800 Sales salaries 162,800 61,100 54,600 47,100 Delivery salaries 36,900 14,300 14,300 8.300 Store rent 224,200 87,100 81,900 55.200 Depreciation of store fixtures 49,500 23.200 11,300 15,000 Depreciation of delivery equipment 30.100 11,700 11,700 6,700 659,500 234,000 Total selling expenses 254,700 170,800 Administrative expenses Store management salaries 84,800 31,200 31,200 22,400 General office salaries 51,100 22,700 13,600 14,800 106.200 40,300 41,600 24,300 Insurance on fixtures and inventory 28.100 10.200 11,500 6.400 Employment taxes 40,100 14.400 15,800 9,900 ther 23.800 10.500 6.400 6,900 334,100 Total administrative expenses 129,300 120,100 84,700 993,600 255,500 Total operating expenses 384,000 354,100 303,200 188,000 (40,800) 156,000 Net operating income (loss)