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 $2,040,000 840,000 1,200,000 Gross margin Selling and administrative expenses: Selling expenses Administrative expenses $ 440,000 240,000 680,000 Operating income $ 520,000 The guitars sell, on average, for $850 each. The department's variable selling expenses are $79 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 $350 per guitar, Required: 1. Prepare an income statement for the quarter using the contribution approach. THE RHYTHM SHOP Income Statement Acoustic Guitar Department suppliers at an average cost of $350 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 Variable expenses: Fixed expenses: 2. What was the contribution toward fixed expenses and profits from each guitar sold during the quarter? (State this figure in a single dollar amount per guitar.) Contribution margin por guitar 3. If The Rhythm Shop sells 140 more guitars in the quarter ending June 30 than it did in the quarter ending March 31, and fixed costs remain the same, by how much will operating income increase? Operating income increase by