$ 108,000 60,400 $ 47,600 Revenues Cost of goods sold ($10,000 + $2.80/unit) Gross profit Operating expenses: Selling ($2,200 + $1.00/unit) Administration ($5,000 + $0.40/unit) Operating income 20,200 12,200 $ 15,200 Required: a. Prepare an income statement in the contribution margin format. Prepare an income statement in the contribution margin format. 108,000 Contribution Margin Income Statement Revenues $ Variable expenses: Cost of goods sold Selling expenses Administrative expenses | $ 108,000 Total variable expenses Contribution margin Fixed expenses: Cost of goods sold Selling expenses Administrative expenses TI Total fixed expenses Operating income $ 108,000