Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the three most recent months follow: Morrisey &Brown, Ltd Income Statements For the Three Months Ended September 30 July August September Sales in units Sales Cost of goods sold GrOSs marcin Selling and administrative expenses: 4,750 546,250 327,750 218,500 5,250 $603,750 362,250 241,500 5,750 $661,250 396,750 264,500 Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense 31,800 35,500 81,000 6,550 18,000 172,850 45,650 31,800 38,100 87,300 6,550 18,000 181,750 $59,750 31,800 40,700 93,600 6,550 18,000 190,650 $ 73,850 Total selling and administrative expenses Net operating income