Molly's Cupcakes management is trying to decide whether to stay in business. They are currently losing money. They want to know how close they are to making a profit. They are also considering a couple of alternatives in their quest for profitability Molly's provided the following information from the most recent monthly financials: Revenue Expense Profit (loss $3,1002 $34,000 37,100 When talking to Molly's management, you first asked two questions to help you understand the data provided: (1) What costs are included in expenses? (2) How do these costs behave? Management responded with the following information Costs have been matched to revenue to determine what costs should appear as expenses. The costs of goods remaining in inventory are not included in expenses. There are no fixed manufacturing costs. Cost of sales is 40% of revenue. $8,500 of the selling and administrative expenses are variable. Costs and selling prices are expected to remain stable for at least the next two years