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 RHYTH SHOP Inco Statement-Acoustic Guitar Department For the Quarter Ended March 31 Sales Cost of goods sold $2,635,000 1,035,000 1,550,000 GTON arrin Selling and administrative expenses Selling expenses Administrative expenses $ 510, 310,000 320,000 Operating income $ 230,000 The guitars sell on average, for $850 each. The department's variable selling expenses are $86 per guitar sold. The remaining selling expenses are fixed. The administrative expenses are 25% variable and 75% fixed. The company purchases its quitars 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 For the Quarter Ended March 31 $ 2,635,000 Sales The guitars sell, on average for $850 each. The department's variable selling expenses are $86 per guitar sold. The remaining seling 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 $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 Sales $ 2,635,000 Variable expenses Cost of goods sold $ 1,085,000 Administrative expenses Selling expenses 1.085,000 Contribution margin 1 550,000 Fixed expenses Selling experises 0 Administrative expenses S 1550 000 Operating income 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 margini per quit 3. If The Rhythm Shop sells 100 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 in como increaso by