An income statement for Sam's Bookstore for the first quarter of the year is presented below:

Sam's BookstoreIncome StatementFor Quarter Ended March 31Sales$880,000Cost of goods sold550,000Gross margin330,000Selling and administrative expensesSelling$117,000Administration138,000255,000Net operating income$75,000

On average, a book sells for $55. 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.

What is the net operating income using the contribution approach for the first quarter ?