In 2016, the 4 x 4 Shop is a large retailer of pickup trucks. An income statement for the company's Seat Liner Department for the most recent quarter is presented below:

The 4x4 Shop

Income Statement - Seat Liner Department

For the First Quarter of 2016

Sales

$700,000

Less: Cost of goods sold

250,000

Gross margin

450,000

Less: Operating expenses:

Selling expenses

$195,000

Administrative expenses

145,000

340,000

Net income

$110,000

The liners sell, on average, for $350 each. The department's variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 25% variable and 75% fixed. The company purchases its liners from a supplier at a cost of $125 per liner.what is income statement for the quarter using the contribution approach