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 $910,000 645,000 265,000 $103,000 110,000 213,000 $ 52,000 On average, a book sells for $65. Variable selling expenses are $6 per book with the remaining selling expenses being fixed. The variable administrative expenses are 5% 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 O Y = $97,500 + $6.00X O Y = $97,500 + $9.25X Y = $83,500 + $9.25X O Y = $83,500 + $12.50X