Sales 42,500,000 121.4% Cost of Items Purchased 35,000,000 100.0% Gross margin 7,500,000 21.4% Warehouse Personnel Expense 2,400,000 6.9% Warehouse Expenses (excluding personnel) 2,000,000 5.7% Freight 450,000 1.3% Delivery Truck Expenses 200,000 0.6% Order entry expenses 800,000 2.3% General and selling expenses 2,000,000 5.7% Interest expense 120,000 0.3% Net Income Before Taxes (470,000) -1.3%