The University Store, Inc. is the major bookseller tor four nearby colleges. An income statement for the first quarter of the year is presented below:

On average, a book seller for $40.00. Variable selling expenses are $3.00 per book: the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed.
The net operating income computed using the contribution approach for the first quarter is:

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University Store, Inc. Income Statement For the Quarter Ended March 31 $800,e00 560,e00 240, e00 Sales Cost of goods sold Gross margin Selling and administrative expenses Selling Administrative $100,000 110,e00 210, e00 $ 30,000 Net operating income The University Store, Inc. is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below: University Store, Inc. Income Statement For the Quarter Ended March 31 $800, 000 560, 000 240,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Selling Administrative 110,000 210, e00 Net operating income $ 30,000 On average, a book sells for $40.00. Varlable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed. The net operating income computed using the contribution approach for the first quarter is: