An income statement for Alexander's Bookstore for the second quarter of the year is presented below Alexander's Bookstore Income Statement For Quarter Ended Dune 30 Sales Cost of goods sold Gross margin Selling and administrative expenses Selling Administration Net operating income $900,000 640,000 260,000 $102,000 108,000 210,000 $ 50,000 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 4% of sales with the remainder being fixed The contribution margin for Alexander's Bookstore for the second quarter is