The Patty Company manufactures and sells two lines of fly fishing rods. During the most recent accounting period, the Pro line and the Novice line sold 20,000 and 7,000 units, respectively. The company's most recent financial statements are shown below: Pro Novice Sales $ 1,200,000 $ 840,000 Less cost of goods sold: Unit-level production cost 800,000 472,500 Depreciation, production equipment 200,000 175,000 Gross margin $ 200,000 $ 192,500 Less operating expenses: variable selling and administrative costs 52,500 227,500 Allocated Corporate-level facility expenses (fixed) 48,000 48,000 Net income (loss) $ 99,500 $ (83,000 )