P7.4 You have the following income statements for each of the four quarters Sales revenue Cost of sales of a restaurant operation: 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. $86,400 $97,000 $89,400 $46,400 18,100) Gross Margin Operating Expenses Wages & salaries expense $32,000 (32,800) (35,900) (33,100) $53,600 $61,100 $56,300 $28,300 $35,900 $33,100 $17,800 Supplies expense 1,900 2,200 1,970 1,100 Advertising expense 900 900 900 600 Utilities expense 2,600 2,900 2,680 2,400 Maintenance expense 450 450 400 400 Insurance expense 1,200 1,200 1,200 1,200 Interest expense 750 750 750 750 Depreciation expense 700 700 700 700 Rent expense 6,000 6,000 6,000 6,000 Total operating expenses $46,500 $51,000 $47,700 $30,950 Operating income (loss) $ 7,100 $10,100 $ 8,600 ($ 2,650) The owner is contemplating closing the restaurant in the fourth quarter in order to eliminate the loss and take a three-month vacation. The owner