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 $3,150,000 Sales Cost of goods sold 1,925,000 1,225,000 900,000 $ 325,000 Gross margin Selling and administrative expenses Selling expenses Administrative expenses $550,000 350,000 Operating income The guitars sell, on average, for $900 each. The department's variable selling expenses are $90 per guitar sold. The remaining selling expenses are fixed. The administrative expenses are 25% variable and 75% fixed. The company purchases its guitars from several suppliers at an average cost of $550 per guitar Requirea: 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 Variable expenses Fixed expenses