Cannon Company Operates a Clothing Store That Reported the Following $$\text { Income Statement }$$

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

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