Question 3 The 4 x 4 Shop is a large retailer of equipment for pickup trucks. An income statement for the company's Bed Liner Department for the most recent quarter is presented below: The 4 x 4 Shop Income Statement Liner Department For First Quarter of Curren Year Sales Less: Cost of goods sold Gross margin Less: Operating expenses: Selling expenses Administrative expenses Net income $700,000 250,000 450,000 $195,000 145,000 340,000 The liners sell, on average, for $350 each. The department's variablesellingexpenses are S35 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 ofS125 per liner Required: Prepare an income statement for the quarter, using the contribution approach