Precious Pets is a specialty pet gift shop selling exotic pot-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 Precious Pets would like to translate the company's income statement into the contribution margin format. Since Precious Pets 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 (520,400), 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 Precious Pets' contribution margin income statement for last year. Precious Pets Contribution Margin Income Statement For the Year Ended December 31 Less 985,000 669,000 Precious Pets Traditional Income Statement (Absorption Costing) For the Year Ended December 31 Sales revenue Less: Cost of goods sold Gross profit Less operating expenses Selling and marketing expenses 64,000 Website maintenance expenses 57,000 17,200 Other operating expenses $ Operating income $ 316,000 138,200 177,800