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 good variable. A large portion of the selling and marketing expenses consists of freight-out charges ($20,200), which were also variable. Only 20% of the remaining selling and marketing expenses and 25% of the website expen variable. Of the other operating expenses, 90% were fixed. Based on this information, prepare Cute Cats' contribution margin income statement for last year. Contribution Margin Income Statement For the Year Ended December 31 Data Table A B 1 Cute Cats 2 Traditional Income Statement (Absorption Costing) 3 For the Year Ended December 31 4 Sales revenue $ Contribution margin Cost of goods sold Fixed expenses Fixed selling and marketing expenses Fixed website maintenance expenses Operating income Other fixed operating expenses Other variable operating expenses Sales revenue Total fixed expenses Total variable expenses Variable expenses Variable selling and marketing expenses Variable website maintenance expenses I 1 OWITH 996,000 670,000 5 Less: Cost of goods sold 6 Gross profit $ 326.000 7 Less operating expenses: Selling and marketing expenses 8 $ 62,000 9 Website maintenance expenses 56,500 put fields and then click Check Answer. 10 Other operating expenses 17,000 135,500 Ner 11 Operating income 190,500 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: E: (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 ($20,200), 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. Contribution Margin Income Statement For the Year Ended December 31 Less: Less: Choose from any list or enter any number in the input fields and then click Check
