6 An Income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore 02:53:26 Income Statement For Quarter Ended March 31 Sales $840,000 Cost of goods sold Gross margin 525,000 315,000 Selling and administrative expenses Selling $ 112,000 Administrative 128,000 240,000 Net operating income $ 75,000 On average, a book sells for $60. Variable selling expenses are $6 per book with the remaining selling expenses being fixed. The variable administrative expenses are 5% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is: Multiple Choice 5651,000 $189,000 $231,000 $714,000