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 $850,000 Cost of goods sold Gross margin Selling and administrative expenses Selling 535,000 315,000 $114,000 Administration 132,000 246,000 Net operating income $ 69,000 On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrativ expenses are 4% of sales with the remainder being fixed. The net operating income using the contribution approach for the first quarter is: Multiple Choice $69,000 $196,000 $230,000 $315,000