TB MC Qu. 1-251 (Static) The University Store, Incorporated is the major bookseller... The University Store, Incorporated is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is below University store, Incorporated Income Statement For the Quarter Ended March 31 Bales 800,000 Cost of goods sold 560,000 Gross margin 240,000 Belling and administrative expenses $ 100,000 Administrative 110,000 210,000 Het operating Income $30,000 On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining setting expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed. The cost formula for selling and administrative expenses with "X" equal to the number of books sold is