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 645,000 Gross margin 265,000 Selling Net operating income Selling and administrative expenses Administration $103,000 110,000 213,000 $ 52,000 On average, a book sells for $65. Variable selling expenses are $6 per book with the remaining selling expenses being fixed. The variable administrative expenses are 5% of sales with the remainder being fixed. The net operating income using the contribution approach folhe first quarter is