QUESTION!(10 MARKSISMINUTES) PLACE YOUR ANSWERS TO THE FOLLOWING QUESTIONS Is EXAMINATION BOOKLETS PROVIDED. DO NOT PROVIDE ANY The 4 x 4 Shop is a large retailer of equipment for pickup i company's bed liner department for the most recent quarter ANSWERS ON is presented below The 4 x 4 Shop Income Statement Liner Department For First Quarter of Current Year Sales Less cost of goods sold Gross margin Less operating expenses Selling expenses $700,000 250.000 450,000 $195,000 Administrative expensers 145.000 340.000 S110,000 Net income The liners sell, on average, for $350 cach. The department's variable selling expenses are $35 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 of $125 per liner. Required Prepare an income statement for the quarter, using the contribution (variable) approach