Total Districts Company Sales @ TK 20 per unit TK 1 000 000 TK 300.000 TK . 500.000 TK 200.000 Less cost of goods sold @ TK . pe 450.000 135 000 225.000 90.000 unit Gross margin 550.000 165000 275000 110.000 Less operating expenses Marketing expenses Shipping 51 250 11 250 25000 15000 Warehouse rent 80 000 24.000 40.000 16000 Sales commissions 60.000 18000 30.000 12000 Sales salaries 30 000 12000 10.000 8000 District advertising 75000 20.000 25000 30.000 National advertising 115000 34. 500 57.500 23 000 Total marketing expenses 471. 250 119 750 187 500 104.000 Administrative expenses District management salaries 40.000 12000 15000 13.000 Central office administrative expenses 100 000 30 000 50.000 20.000 Total administrative expenses 140.000 42 000 65000 33 000 Total operating expenses 551 250 161 750 252 500 137 000 Net operating income ( loss ) TK 1 1 250 TK 3 250 TK 22500 TK 127 000