An income statement for Sam's Bookstore for the first quarter of the year is presented below: 13 Sam's Bookstore Income Statement For Quarter Ended March 31 Sales $900,000 Cost of goods sold 640,000 Gross margin 260,000 Selling and administrative expenses Selling $ 102,000 Administration 108,000 210,000 Net operating income $ 50,000 On average, a book sells for $60. Variable selling expenses are $5 per book with the remaining seling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed. The net operating income using the contribution approach for the first quarter is: Multiple Choice $260.000