1 THE In Statistic Guitar For the water and ale Cost of goods sold 11,00 1,100.00 swari Selling and insteative west Selling expenses Administrative pense S. 220.000 Operating Inco 140,00 $ 200.000 ht The guitars sell, on average for $900 each. The department's variable seling expenses are 577 per guitar sold. The remaining eng expenses are fored. The administrative expenses are 25% variable and 75% fred. The company purchases its guitars from several suppliers at an average cost of $500 per guitar Required: 1. Prepare an income statement for the quarter using the contribution approach. s THE RHYTHM SHOP Income Statement--Acoustic Guitar Department For the Quarter Ended March 31 Miscellaneous expenses $ 1,980,000 Variable expenses Cost of goods sold Miscellaneous expenses Administrative expenses 0 1,980,000 Fixed expenses Miscellaneous expenses Administrative expenses 0 Operating income $ 1,980,000 Prey 1 of 8 re to search o Ps hp