P7.4 You have the following income statements for each of the four quarters of a restaurant operation Sales revenue Cost of sales Gross Margin Ist Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr $86.400 $97,000 $89.400 S46,400 32.800) 35.900) 33,100) (18,100) $53,600 $61,100 $56,300 S28,300 Operating Expenses Wages & salaries expense $32,000 $35,900 $33,100 $17,800 1,900 2,200 ,970 Supplies expense Advertising expense Utilities expense Maintenance expense Insurance expense Interest expense Depreciation expense Rent expense 1,100 2.600 2.900 2,680 2.400 400 1,200 1,200 750 450 1,200 750 700 6,000 450 400 1,200 750 700 750 700 6,000 6,000 6,000 Total operating expenses $46,500 $51,000 $47,700 S30,950 Operating income (loss) 7.100 $10,100 8.600 S 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