Sam's Bookstore Income Statement For Quarter Ended March 31 Sales Cost of goods sold $ 910,000 560,000 Gross margin 350,000 Selling and administrative expenses Selling Administrative $ 119,000 142,000 261,000 Net operating income $ 89,000 On average, a book sells for $65. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is: Multiple Choice $643,300 $266,700 $826,700 $294,000