An income statement for Crandall's Bookstore for the first quarter of the current year is presented below:

CRANDALL's BOOKSTORE

Income Statement for the First Quarter of the Current Year

Sales$800,000Less: Cost of Goods Sold - all variable560,000Gross Margin240,000Less: Operating Expenses:Selling$98,000Administrative98,000196,000Operating Income$44,000

On average, a book sells for $50. Variable selling expenses are $5.50 per book, with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales, with the remainder being fixed.

Using the contribution approach, what is the operating income for the first quarter?