1-The Tailgate Shop is a large retailer of equipment for pickup trucks. An income statement for the company's Trailer hitch Department for the most recent quarter is presented below:

The Tailgate Shop
Income Statement (Trailer Hitch Department)
For the first quarter of the year
Sales		$ 550,000
Less: Cost of goods sold		250,000
Gross margin		300,000
Less: Operating expenses
	Selling expenses	160,500
	Administrative expenses	120,000	280,500
Net income		$ 19,500

The trailer hitches sell, on average, for $220 each. The department's variable selling expenses are $20 per hitch sold. The remaining selling expenses are fixed. The administrative expenses are 30% variable and 70% fixed. The company purchases its hitches from a supplier at a cost of $100 per hitch. Required:

1- Prepare an income statement for the quarter, using the contribution approach.