13 An Income statement for Sam's Bookstore for the first quarter of the year is presented below Help Save Submit 19:22 San's Bookstore Income Statement For Quarter Ended March 31 Sales $900,000 Cost of goods sold 630,000 Gross margin 270,000 Selling and administrative expenses Selling $100,000 Administration 104,800 204,000 Net operating income $ 66,000 On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining seling expenses being feed. The variable administrative expenses are 4% of sales with the remainder being fixed 20,000 books are sold during the second quarter and this activity is within the relevant range the company's expected contribution margins would be Multiple Choice