Cannon Company Operates a Clothing Store That Reported the Following $\quad$

Cannon Company operates a clothing store that reported the following operating results for the current year:
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Income statement }$
$\begin{array}{lr}\text { Sales revenue } & \$ 2,000,000 \\\text { Cost of goods sold } & \underline{(1,200,000) }\\\text { Gross margin } & \$ 800,000 \\\text { Employee commissions and bonuses ( } 5 \% \text { of sales) } & (100,000) \\\text { Depreciation expense } & (150,000) \\\text { Salaries expense } & (260,000)\\\text { Shipping and delivery expense ( \( 2 \% \) of sales)} &(40,000) \\\text { Advertising expense}&\underline{(80,000) }\\\text { Net income }&\underline{\$170,000}\end{array}$
Required: Prepare an income statement for Cannon Company using the contribution margin format.

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The contribution margin format of an inc...

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