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 Current Year

Sales $$700,000$

Less: Cost of goods sold $250,000$

Gross margin $450,000$

Less: Operating expenses:

Selling expenses $$195,000$

Administrative expenses $145,000340,000$

Net income $$110,000$

The liners sell, on average, for $$350$ each.

The department's variable selling expenses are $$53$ per liner sold. The remaining selling expenses are fixed.

The administrative expenses are $22\%$ variable and $78\%$ 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 approach.