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 Cost of goods sold Gross margin Selling and administrative expenses Selling Administration Net operating income $900,000 640,000 260,000 $102,000 108,000 210,000 $ 50,000 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 cost formula for selling and administrative expenses with "X" equal to the number of books sold is: Multiple Choice O Y = $99,000 + $9.80X Y = $86,000 + $5.00X Y = $86,000 + $7.40X Y = $99,000 + $7.40X