Gorham Manufacturing's sales slumped badly in 2009. For the first time in its history, it operated at a loss.

Gorham Manufacturing's sales slumped badly in 2009. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 600,000 units of product: Net sales $2,400,000; total costs and expenses $2,540,000; and net loss $140,000. Costs and expenses consisted of the amounts shown below.