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 nex.

 

 

For internal planning and decision-making purposes the owner of Elegant Elephants Elegant Elephants would like to translate the company's income statement into the contribution margin format Since Elegant Elephants Elegant Elephants is web-based all of its cost of goods sold is variable A large portion of the selling and marketing expenses consists of freight out charges $19,800 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.

O Data Table Elegant Elephants Traditional Income Statement (Absorption Costing For the Year Ended December 31 $ 1,008,000 Salea revenue Less: Coat of goods sold 68.000 Gross proft 340,000 Lese oporating expenses Saling and markating expenses 61,500 Website martenance esperses 50.500 17.200 137.200 Other operaing expenses 202 B00 Operating incoma