3. The 4 x 4 Shop is a large retailer of equipment for pickup trucks. An income statement for the company's Bed Liner Department for the most recent quarter is presented below: The 4 x 4 Shop Income Statement--Liner Department for First Quarter of Current Year $700,000 250,000 $450,000 Sales Less: Cost of goods sold Gross margin Less: Operating expenses: Selling expenses Administrative expenses Net income $195,000 145000 340,000 $110,000 The liners sell, on average, for $350 each. The department's variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 25% variable and 75% fixed. The company purchases its liners from a supplier at a cost of $125 per liner. Required: Prepare an income statement for the quarter, using the contribution approach. (8 Marks)