THE RHYTHM SHOP Income Statement-Acoustic Guitar Department For the Quarter Ended March 31 Sales Cost of goods sold $1,785,000 945,000 Gross margin Selling and administrative expenses: Selling expenses Administrative expenses 840,000 $ 410,000 210,000 620,000 Operating income $ 220,000 The guitars sell, on average, for $850 each. The department's variable selling expenses are $76 per guitar sold. The remaining seling expenses are fixed. The administrative expenses are 20% variable and 80% fored. The company purchases its guitars from several suppliers at an average cost of $450 per guitar Required: 1. Prepare an income statement for the quarter using the contribution approach THE RHYTHM SHOP Income Statement Acoustic Guitar Department For the Quarter Ended March 31 to search acer