me CU ption Hugable Hippos 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 (Click the icon to view the results.) For internal planning and decision-making purposes, the owner of Hugable Hippos would like to translate the company's income statement into the contribution margin format. Since Hugable Hippos 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 ($20,400), which were also variable. Only 20% of the remaining selling and marketing expenses and 25% of the website expenses were variab Of the other operating expenses, 90% were fixed. Based on this information, prepare Hugable Hippos' contribution margin income statement for last year. A B C 1 2 3 Hugable Hippos Traditional Income Statement (Absorption Costing) 4 Sales revenue 5 For the Year Ended December 31 Less: Cost of goods sold 6 Gross profit S 993,000 667,000 $ 326,000 7 Less operating expenses: 8 Selling and marketing expenses $ 61,500 9 Website maintenance expenses 57.000 10 Other operating expenses 17,700 136,200 11 Operating income $ 189,800 Hugable Hippos Contribution Margin Income Statement For the Year Ended December 31 Sales revenue $ 993,000 Less: Variable expenses Cost of goods sold 667,000 Variable selling and marketing expenses 28,620 Variable website maintenance expenses 14,250 Other variable operating expenses 1,770 Contribution margin 281,360 Less: Fixed expenses Less: Variable expenses Cost of goods sold 667,000 Variable selling and marketing expenses 28,620 Variable website maintenance expenses 14,250 Other variable operating expenses 1,770 Contribution margin 281,360 Less: Fixed expenses or Fixed selling and marketing expenses ro Fixed website maintenance expenses Other fixed operating expenses Operating income