Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,553,000 566,799 986,210 1,085,000 $ (98,790) In an effort to resolve the problem, the company would like to prepare an income statement s Accounting Department has developed the following information: Division East Central West Sales $423,000 $620,000 $510,000 Variable expenses as a percentage of sales 53% 24% 38% Traceable fixed expenses $268,000 $330,000 $201,000