Refer to the information presented in problem 6-25.

Required: Prepare a multiple-step income statement for Karl’s Athletic Shop.

problem 6-25.

The following is the contribution income statement for Karl’s Athletic Shop:

Required: Based on this contribution income statement, prepare a condensed contribution income statement for Karl’s Athletic Shop.

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Sales Variable Cost: Karl's Athletic Shop Contribution Income Statement For the Year Ended December 31, 2005 Variable Selling Expense Cost of Goods Sold Variable Administrative Expense Total Variable Cost Contribution Margin Fixed Cost: Fixed Selling Expense Fixed Administrative Expense Total Fixed Cost Operating Income $422,000 $205,000 55,000 22,000 (282,000) $140,000 $ 75,000 34,000 (109,000) $ 31,000