Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: Cost of clay used in production $74,000 Wages paid to the workers who paint the $98,000 figurines Wages paid to the sales manager's secretary $30,000 Cost of junk mail advertising $47,000 What is the total of the direct costs above? An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement For Quarter Ended March 31 Sales $1,000,000 Cost of goods sold 665,000 Gross margin 335,000 Selling and administrative expenses Selling $107.000 Administration 118,000 225,000 Net operating income $ 110,000 On average, a book sells for $50. 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 foed. The net operating income using the contribution approach for the first quarter is