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 $800,000

Less: Cost of Goods Sold - all variable 560,000

Gross Margin 240,000

Less: Operating Expenses: Selling $98,000

Administrative 98,000 196,000

Operating 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? Multiple Choice $240,000. $44,000. $128,000. $152,000.