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 $900,000 Cost of goods sold 630,000 Gross margin 270,000 Selling and administrative expenses Selling $100,000 Administration 104,000 204,000 Net operating income $ 66,000 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. If 20,000 books are sold during the second quarter and this activity is within the relevant range, the company's expected contribution margin would be: Multiple Choice $300,000 $160,000 $860,000 $58,000