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 $ 910,000 cost of goods sold 560,000 gross margin 350,000 selling and administrative expenses selling $ 119,000 administration 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 net operating income using the contribution approach for the first quarter is: