Calvin's Martial Arts Company Income Statement For Quarter Ended March 31 Sales $850,000 Cost of goods sold 535,000 Gross margin Selling and administrative expenses 315,000 Selling Administration $114,000 132,000 246,000 Net operating income $69,000 On average, a Martial Arts Membership sells for $50. Variable selling expenses are $5 per membership with the remaining selling expenses being fixed. The variable administrative expenses are 4 % of sales with the renainder being fixed. The contribution margin for the Martial Arts Company for the first quarter is: Multiple Choice $196,000 Next> 9 of 35 Prev