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 Bales Cost of goods sold 5900,000 630,000 Gross margin 270,000 Belling and administrative expenses Belling $100,000 Administration 104,000 204,000 $66,000 Help Save & Ext Sube Het 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. The net operating income using the contribution approach for the first quarter is Multiple Choice C $144.000 $66,000 $180,000 $270,000