1. Convert a traditional income statement into a contribution margin income statement.

A traditional income statement for Daltons Products, a high-end kite retailer, reflects the following activities for the month of July. Assume that all Cost of Goods Sold is variable.

Sales		$448,000
Less Cost of Goods Sold		(210,000)
Gross Profit		$238,000
Less Operating Expenses:
Selling	90,000
Administration	45,000	(135,000)
Operating Income		$103,000

Kites sell for $32.00 each. Variable expenses are $5.00 per kite and remaining selling expenses are fixed. Administrative expenses are 18% fixed.

Prepare a contribution margin income statement in correct form for the month of July.

Sales
Less variable expenses:
Variable Cost of Goods Sold Variable Selling
Variable Administrative
Contribution Margin
Less fixed expenses:
Fixed Selling
Fixed Administrative
Operating income

please put formulas thank you!