The following income statement was drawn from the records of Butler Company, a merchandising firm: BUTLER COMPANY Income Statement For the Year Ended December 31, 2014 Sales revenue (4,500 units * $163) $ 733,500 Cost of goods sold (4,500 units * $87) (391,500) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (4,500 units * $3) 342,000 (36,675) (89,000) (31,000) (43,000) (13,500) Net income $ 128,825 Required: a. Reconstruct the income statement using the contribution margin format. BUTLER COMPANY Income Statement For the Year Ended December 31, 2014 Less: Variable costs