Precious Pets Traditional Income Statement (Absorption Costing) For the Year Ended December 31 Sales revenue $ 996,000 672,000 Less: Cost of goods sold $ 324,000 Gross profit Less operating expenses: Selling and marketing expenses $ 63,500 Less operating expenses: Selling and marketing expenses Website maintenance expenses 63,500 56,500 18,200 138,200 Other operating expenses 185,800 Operating income Precious Pets 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 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 ($19.000), which were also variable. Only 20% of the remaining selling and marketing 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