Great Giraffes 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:

For internal planning and decision-making purposes, the owner of Great Giraffes would like to translate the company's income statement into the contribution margin format. Since Great Giraffes 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($19,000), 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 Great Giraffes' contribution margin income statement for last year.

Great Giraffes Traditional Income Statement (Absorption Costing) For the Year Ended December 31

Sales revenue	$996,000
Less: Cost of goods sold	670,000
Gross profit	$326,000
Less operating expenses:
Selling and marketing expenses	$64,000
Website maintenance expenses	58,500
Other operating expenses	18,800 141,300
Operating income	$184,700