Fve Macaws is a specialty bed gift shop selling exotic bed related items online. The shop has no physical location. Results for last year are shown next. For internal planning and decision making purposes, the owner of Five Macaws would like to translate the company's income statement into the contribution margin format. Since Five Macaws 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 $19,400, 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 Five Macaws' contribution margin income statement for last year.

Traditional Income Statement (Absorption Costing) For the Year Ended December 31 Sales revenue 990,000 Less: Cost of goods sold 673,000 Gross profit 317,000 Less operating expenses: Selling and marketing expenses 65,500 Website maintenance expenses 58,000 Other operating expenses 17,600 141, 100 175,900 Operating income $