An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement For the Quarter Ended March 31 4 Sales Cost of Goods Sold Gross Margin Less Operating Expenses Selling Administration Net Operating Income 900000 50 = 18,000 books $900,000 630.000 270,000 $100,000 104,000 204,000 $66,000 -So 900,000 630,000 CM 90.000 - FC 36.000 $144.000 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.