Reading Tech, Inc. produces and sells two types of e-readers: Paperwhite and Color. All sales are made through the company's website. The company produces the e-readers in a factory using equipment and supervisors that are shared by the product lines. It engages in advertising that focuses on brand name rather than individual product line. Information from August 2013 follows. Paperwhite Color Total Units produced and sold 2.000 4.000 .6.000 Revenue ........ $240,000......... $880,000 $1,120,000 Variable cost Production .................. 110,000 640,000 750,000 Commissions (5% of selling price).... 12.000 44.000 56.000 Contribution margin . $118,000. $196,000 .314,000 Fixed costs Production. 175,000 Advertising. 50,000 Administrative salaries 40.000 Net operating income. $49.000 Management expects its product mix to remain stable for the next year