Bonita sports sells volleyball kits that it purchases from a sports equipment distributor. the following static budget based on sales of 1,580 kits was prepared for the year. fixed operating expenses account for 63% of total operating expenses at this level of sales. sales $ 79,000 cost of goods sold (all variable) 47,400 gross margin 31,600 operating expenses 27,650 operating income $ 3,950 assume that during the year bonita sports actually sold 1,659 volleyball kits during the year at a price of $38 per kit.