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 41 $930,000 Cost of goods sold 655,000 Gross margin 275,000 Selling and administrative expenses Selling $ 105,000 Administrative 114,000 219,000 Net operating income $ 56,000 On average, a book sells for $60. 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 $160,300 $197,500