Refer to the information presented in problem 6-23.

Required: Prepare a multiple-step income statement for The Lauren Company.

problem 6-23.

Following is the contribution income statement for The Lauren Company:

Required: Based on The Lauren Company’s contribution income statement, prepare a condensed contribution income statement.

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Sales Variable Cost: Cost of Goods Sold The Lauren Company Contribution Income Statement For the Year Ended December 31, 2005 Variable Selling Expense Variable Administrative Expense Total Variable Cost Contribution Margin Fixed Cost: Fixed Selling Expense Fixed Administrative Expense Total Fixed Cost Operating Income $2,320,000 265,000 $4,800,000 484,000 (3,069,000) $1,731,000 $ 648,000 973,000 (1,621,000) $ 110,000