Hugable Pets is a small e-tail business specializing in the sale of exotic pet gifts and accessories over the web. The business is owned by a sole proprietor and operated out of her home. Results for last year are as follows: 1 (Click the icon to view the results.) For internal planning and decision-making purposes, the owner of Hugable Pets would like to translate the company's income statement into the contribution margin format. Since Hugable Pets is an e-tailer, all of its cost of goods sold was variable. A large portion of the selling and marketing expenses consisted of freight-out charges ($20,500), 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 Hugable Pets's contribution margin income statement for last year. Prepare the Hugable Pets contribution margin income statement for last year. Hugable Pets Contribution Margin Income Statement For the Year Ended December 31 (1) Sales revenue (2) Variable expenses: (3) Cost of goods sold 685000 (4) Variable selling and marketing expenses (5) Variable website maintenance expenses (6) Other variable operating expenses (7) Total variable expenses (8) Contribution margin (9) Fixed expenses: (10) Fixed selling and marketing expenses (11) Fixed website maintenance expenses (12) Other fixed operating expenses (13) Total fixed expenses Operating income 996000