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 Store West Loop Store $1,100,000 Total Store Sales $2,700,000 $1,000,000 $600,000 Cost of goods sold Gross margin Selling and administrative expenses: 1,484,000 560,000 359,000 565,000 1,216,000 440,000 241,000 535,000 Selling expenses Direct advertising General advertising Sales salaries Delivery salaries Store rent Depreciation of store fixtures Depreciation of delivery equipment 121,300 19,000 152,000 33,000 203,000 46,360 27,000 37,000 7,037 47,000 11,000 67,000 17,800 9,000 42,000 4,222 42,000 11,000 63,000 8,700 9,000 42,300 7,741 63,000 11,000 73,000 19,860 9,000 Total selling expenses 601,660 195,837 179,922 225,901 Administrative expenses Store management salaries General office salaries Utilities Insurance on fixtures and inventory Employment taxes General office expenses-other* 77,000 47,000 94,600 24,900 36,300 22,000 24,000 17,407 31,000 7,800 11,100 24,000 10,444 32,000 8,800 12,200 4,889 29,000 31,600 8,300 13,000 8,963 Total administrative expenses 301,800 99,455 92,333 110,012 Total operating expenses 903,460 295,292 272,255 335,913 Net operating income (loss) S 312,540 144,708 S (31,255) S199,087