acct homework

Elegant Elephants 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 Elegant Elephants would like to translate the company's income statement into the contribution margin format. Since Elegant Elephants is online only, all of its cost of goods sold s variable. A large portion of the selling and marketing expenses consists of freight-out charges ($19,000), 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 Elegant Elephants' contribution margin income statement for last year. Elegant Elephants i Data Table X Contribution Margin Income Statement For the Year Ended December 31 A B C Less: 1 Elegant Elephants 2 Traditional Income Statement (Absorption Costing) 3 For the Year Ended December 31 4 Sales revenue $ 1,005,000 5 Less: Cost of goods sold 674,000 6 Gross profit $ 331,000 Less: 7 Less operating expenses: 8 Selling and marketing expenses 64,500 9 Website maintenance expenses 58,500 10 Other operating expenses 18,800 141,800 11 Operating income $ 189,200 Print Done Choose from any list or enter any number in the input fields and then continue to the next