Information for XYZ Inc.: XYZ Inc. Income Statement For Quarter Ended March 31 Sales COGS $1,000,000 665,000 335,000 GM S&A exp. Selling Administration Operating income $ 107,000 118,000 $ 225,000 110,000 On average, a widget sells for $50. Variable selling expenses are $4 per widget with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed. Net operating income (from a contribution margin income statement) is