The following information pertains to Quality Food Service for the first two quarters of a year. Quality Food Service Second First Quarter Quarter Sales at $4.80 per $36,000 $63,000 meal Total costs 62,000 80,000 Income (loss) ($26,000) ($17,000) Each dollar of variable costs comprises of 50 percent direct labor, 25 percent direct materials, and 25 percent variable overhead costs. The company's fixed costs are $38,000 each quarter. Quality expects price per unit, variable cost per unit, and total fixed costs to remain at the same level in the third quarter as during the first two quarters. Quality also expects the sales level in the third quarter to be the same as in the second quarter