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			$	840,000
Cost of goods sold				520,000
Gross margin				320,000
Selling and administrative expenses
Selling	$	111,000
Administration		126,000		237,000
Net operating income			$	83,000

On average, a book sells for $70. 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 Sam's Bookstore for the first quarter is: