987,000 666,000 Cute Cats Traditional Income Statement (Absorption Costing) For the Year Ended December 31 Sales revenue $ Less: Cost of goods sold Gross profit $ Less operating expenses: Selling and marketing expenses $ 61,000 Website maintenance expenses 58,500 Other operating expenses 18,000 321,000 137,500 183,500 Operating income Cute Cats is a specialty pet gift shop selling exotic pet-related items online. The shop has no physical location. Results for last year are shown next: (Click the icon to view the results.) For internal planning and decision-making purposes, the owner of Cute Cats would like to translate the company's income statement into the contribution margin format. Since Cute Cats is online only, all of its cost of goods sold is variable. A large portion of the selling and marketing expenses consists of freight-out charges ($19,200), which were also variable. Only 20% of the remaining selling and marketing expenses and 25% of the website expenses were variable. Of the other operating expenses, 90% were fixed. Based on this information, prepare Cute Cats' contribution margin income statement for last year. Cute Cats Contribution Margin Income Statement For the Year Ended December 31 Less: Less