Income Statement Percentages Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers and sold 8,000 coffee makers during the month of March at a total cost of $612,500. Each coffee maker sold at a price of $100. Morning Smiles also incurred two types of selling costs: commissions equal to 5% of the sales price and other selling expense of $45,000. Administrative expense totaled $47,500. Required: Prepare an income statement for Morning Smiles for the month of March and calculate the percentage of sales revenue represented by each line of the income statement. (Note: Round answers to one decimal place.) Morning Smiles Coffee Company Income Statement For the Month of March Percent* Sales revenue 800,000 100 Cost of goods sold 612,500 76.6 Gross margin 187,500 23.4 Less: Selling expense: Variable commissions 40,000 Fixed selling expense 45,000 Administrative expense 47,500 5.9 Operating income 55,000 6.9