Gallop Corporation prepared the following report for the first quarter of this year Sales (2,400 units @ $2700 per unit) Less: Cost of goods sold $6.480.000 3.262.000 3218,000 Gross margin Less Selling expenses Administrative expenses $1,059,000 1,070,000 2,129,000 Income $ 1,089,000 Gallop's controller, Nancy Johnstone, studied the costs in detail, particularly focusing on cost behaviour Her analysis revealed the following Sixty percent of the cost of goods sold was variable with respect to the number of units Of the selling expenses, $840,000 was forced the remaining was variable with respect to the number of units All of the administrative expenses were fixed. Required: 1. Redo the above income statement using a contribution margin approach _GALLOP CORPORATION Income Statement For the First Quarter of 2015 Less: Variable costs Less: Fixed expenses