8 00 An income statement for Sam's Bookstore for the first quarter of the year is presented below. Sam's Bookstore Income Statement For Quarter Ended March 31 Sales $ 900,000 Cost of goods sold Gross margin 635,000 265,000 Selling and administrative expenses Selling $ 101,000 Administrative 106,000 207,000 Net operating income $ 58,000 On average, a book sells for $60. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is: