$ $ Sales Cost of goods sold 450,000 Gross margin 315,000 135,000 Less operating expenses: Selling $ 50,000 Administrative 52,000 102,000 Net income $ 33,000 On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 5% of sales with the remainder being fixed. 5. The contribution margin for Sam's Bookstore for the first quarter is: A) $373,500. B) $ 67,500. C) $ 72,000. D) $382,500. 2