value 2.00 points Frankel British merchandising company, is the exclusive distributor of a product that is gaining rapid acceptance. The company's revenues and expenses (n British pounds) for the last three months are given Frankel Ltd Comparative Income Statements For the Three Months Ended June 30 April May 4,500 3,750 3,000 Sales in units 420, 000 E 525,000 E 630,000 Sales revenue 210,000 252,000 168,000 Cost of goods sold 378,000 315,000 252,000 Gross margin Selling and administrative expenses: 50,000 44,000 56,000 Shipping expense 70.000 70.000 70,000 Advertising expense 107,000 143,000 125.000 Salaries and commissions 9.000 9.000 9,000 nsurance expense 42,000 42.000 42,000 Depreciation expense 320,000 272 000 Total selling and administrative expenses 296,000 (20.000) f 19,000 f 58,000 Net operating income (loss) Note Frankel Ltd s income statement has been recast in the functional format common in the United States The British currency is the pound denoted by f