The Tailgate Shop is a large retailer of equipment for pickup trucks. An income statement for the company's Trailer hitch Department for the most recent quarter is presented below: The Tailgate Shop Income Statement (Trailer Hitch Department) For the first quarter of the year Sales $ 550,000 Less: Cost of goods sold 250,000 Gross margin 300,000 Less: Operating expenses Selling expenses 160,500 Administrative expenses 120,000 280,500 Net income $ 19,500 The trailer hitches sell, on average, for $220 each. The department's variable selling expenses are $20 per hitch sold. The remaining selling expenses are fixed. The administrative expenses are 30% variable and 70% fixed. The company purchases its hitches from a supplier at a cost of $100 per hitch. Required: Prepare an income statement for the quarter, using the contribution approach.