Aa Aa 3. Contribution margin and break-even analysis An excerpt from Holden Inc.'s annual income statement is shown below: $2,600,680 Sales Cost of goods sold 650,000 $950,680 Gross profit Operating expenses $281,000 Selling expenses Administrative expenses 438,500 Total operating expenses 719,500 Income from operations 231,180 Holden's sales revenue is based upon having sold 31,600 units at a price of $82.30 per unit while operating at full capacity. Careful analysis by Holden's accounting staff has revealed that the company's expenses listed above have both variable and fixed components. The breakdown of Holden's costs is shown in the table below: Fixed Variable Cost of goods sold 25% 75% Selling expenses 30% 70% Administrative expenses 75% 25% Use the given information to construct a contribution margin income statement. Holden Inc.'s Contribution Margin Income Statement Sales Variable costs Contribution margin