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 Cost of goods sold Gross margin Selling and administrative expenses $900,000 630,000 270,000 Selling Administration $100,000 104,000 204,000 66,000 Net operating income On average, a book sells for $50. 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. be: If 20,000 books are sold during the second quarter and this activity is within the relevant range, the company's expected contribution margin would Multiple Choice $300,000 $160,000 $860,000 $58,000