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 Administrative Net operating income $ 109,000 122,000 $ 990,000 675,000 315,000 231,000 $ 84,000 On average, a book sells for $60. Variable selling expenses are $6 per book with the remaining sell expenses are 5% of sales with the remainder being fixed.

An income statement for Sam's Bookstore for the first quarter of the year is presented below: On average, a book sells for $60. Variable selling expenses are $6 per book with the remaining sell expenses are 5% of sales with the remainder being fixed