For a recent year, McDooley's, a family-owned group of restaurants, had the following sales and expenses: Line Item Description Amount Amount Sales by company-operated restaurants $270,000 Food and paper $114,880 Payroll and employee benefits 64,600 Occupancy and other expenses 15,420 Selling, general, and administrative expenses 37,300 Other operating expenses (income) 16,200 Net operating expenses (248,400) Operating income (loss) $21,600 Assume that the variable costs consist of food and paper, payroll and employee benefits, and 40% of the selling, general, and administrative expenses