Mark has been operating two profitable restaurants at A and B for several years. A year ago, Mark expanded its business to C, and the C restaurant has been suffering losses since its opening. The annual income statement for last year for the three restaurants are as follows:

A B C Total Revenue $1,200,000 $1,800,000 $800,000 $3,800,000 Cost of Food 480,000 720,000 360,000 1,560,000 Rent (Annual Renewal) 132,000 180,000 140,000 452,000 Utilities 72,000 90,000 85,000 247,000 Labour Costs (paid hourly) 200,000 380,000 185,000 765,000 Allocated corporate overhead 160,000 160,000 160,000 480,000 Total Costs $1,044,000 $1,530,000 $930,000 $3,504,000 Operating Income (Losses) $156,000 $270,000 $(130,000) $296,000