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 $950,000 Cost of goods sold Gross margin 660,000 290,000 Selling and administrative expenses Selling $106,000 Administration 116,000 222,000 $ 68,000 Net operating income On average, a book sells for $50. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 5% of sales the remainder being fixed. The net operating income using the contribution approach for the first quarter is Multiple Choice $290,000 $214,000 $166,500