Beautiful Baboons

is? web-based, all of its cost of goods sold is variable. A large portion of the selling and marketing expenses consists of? freight-out charges?($19,000?), which were also variable. Only? 20% of the remaining selling and marketing expenses and? 25% of the website expenses were variable. Of the other operating? expenses, 90% were fixed. Based on this? information, prepare Beautiful Baboons contribution margin income statement for last year.

Beautiful Baboons Traditional Income Statement (Absorption Costing) For the Year Ended December 31 Sales revenue $990,000 Less: Cost of goods sold 667,000 Gross profit $323,000 Less operating expenses: Selling and marketing expenses $64,500 Website maintenance expenses 56,500 Other operating expenses 17,200 138,200 Operating income $184,800

Beautiful Baboons
Traditional Income Statement (Absorption Costing)
For the Year Ended December 31
Sales revenue		$990,000
Less: Cost of goods sold		667,000
Gross profit		$323,000
Less operating expenses:
Selling and marketing expenses	$64,500
Website maintenance expenses	56,500
Other operating expenses	17,200	138,200
Operating income

Beautiful Baboons

Contribution Margin Income Statement

For the Year Ended December 31