The Rhythm Shop is a large retailer of acoustic, electric, and bass guitars. An income statement for the company's acoustic guitar department for a recent quarter is presented below: THE RHYTHM SHOP Income Statement-Acoustic Guitar Department For the Quarter Ended March 31 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Operating income $3,135,000 1,485,000 1,650,000 $530,000 330,000 860,000 $790,000 The guitars sell, on average, for $950 each. The department's variable selling expenses are $88 per guitar sold. The remaining selling expenses are fixed. The administrative expenses are 20% variable and 80% fixed. 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 Variable expenses For the Quarter Ended March 31 Fixed expenses