please include formulas used, thank you.

Format Painter Clipboard Font Alignment IS Number K17 X Jx D F B E 1 Cost Behavior 2 Prepare a contribution margin income statement 3 Five Macaws is a specialty pet gift shop selling exotic pet-related items online. The shop has no physical 4 location. Results for last year are shown next: 5 6 7 B 9 10 Five Macaws Traditional Income Statement (Absorption Costing) For the Year Ended December 31 $ 990,000 673,000 317,000 $ 11 12 13 14 15 Sales revenue Less: Cost of goods sold Gross profit Less operating expenses: Selling and marketing expenses Website maintenance expenses Other operating expenses Operating income $ 65,500 58,000 17,600 16 17 18 $ 141,100 175,900 For internal planning and decision-making purposes, the owner of Five Macaws would like to translate the company's income statement into the contribution margin format. Since Five Macaws is online only, all of its cost of goods sold is variable. A large portion of the selling and marketing expenses consists of freight- out charges ($19,400), 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. 19 20 . PAIERANIEMIER INSTRUCTIONS ENTERANSWERS Ready Type here to search O wa K17 B D E G For internal planning and decision-making purposes, the owner of Five Macaws would like to translate the company's income statement into the contribution margin format. Since Five Macaws is online only, all of its cost of goods sold is variable. A large portion of the selling and marketing expenses consists of freight- out charges ($19,400), 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. 19 20 21 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from 22 the instructions tab you will be marked wrong, 23 24 Requirements 25 Prepare Five Macaws' contribution margin income statement for last year. 26 Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted 27 Follow the format shown in Exhibit 6 22. 28 29 Saving & Submitting Solution 30 1 Save file to desktop 31 a Create folder on desktop, and label COMPLETED EXCEL PROJECTS 2 Upload and submit your file to be graded. Navigate back to the activity window screen where you downloaded the initial spreadsheet b. Click Choose button under step 3; locate the file you just saved and click Open Click Upload button under step 3 d. Click Submit button under step 4 37 36 Viewing Results 1 Click on Results tab in MyAccountinglab INSTRUCTIONS ENTERANSWERS 32 33 34 C. 35 39 Type here to search O 1 C ED G14 Ix E 3 A B D (Always use cell references and formulas where appropriate to receive full credit. If you 1 copy/paste from the Instructions tab you will be marked wrong.) 2 Five Macaws 4 Contribution Margin Income Statement 5 For the Year Ended December 31 6 Sales revenue 7 Less: Variable expenses 8 Variable cost of goods sold Variable selling and marketing expenses 10 Variable web site maintenance expenses Other variable operating expenses 12 Contribution margin 13 Less: Fixed expenses Fixed selling and marketing expenses 15 Fixed web site maintenances expenses Other fixed operating expenses 17 Operating income 9 11 14 16 18 19 20 21 22 23 24 25 INSTRUCTIONS ENTERANSWERS Ready Type here to search o