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 $840,000 545,000 295,000 $116,000 136,000 252,000 $ 43,000 On average, a book sells for $60. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% 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 = $170,800 + $5.80X o Y = $68,200 + $4.00X o Y = $68,200 + $5.80X o o Y = $170,800 - $7.60X