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 $960,000 Cost of goods sold 670,000 Gross margin 290,000 Selling and administrative expenses Selling $108,000 Administration 120,000 228,000 Net operating income $ 62,000 On average, a book sells for $60. Variable selling expenses are $5 per book with the remaining selling exp expenses are 4% 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 Y = $109,600 + $7.40X Multiple Choice Y = $109,600 + $7.40X Y = $100,400 + $5.00X Y = $109,600 + $9.80X Y = $100,400 + $7.40X