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 $910,000 Cost of goods sold 560,000 Gross margin 350,000 Selling and administrative expenses Selling $ 119,000 Administrative 142,000 261,000 Net operating income $ 89,000 On average, a book sells for $65. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed. The net operating income using the contribution approach for the first quarter is: