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 565,000 Gross margin 345,000 Selling and administrative expenses Selling $ 120,000 Administrative 144,000 264,000 Net operating income $ 81,000 On average, a book sells for $70. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is:

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 565,000 Gross margin 345,000 Selling and administrative expenses Selling $ 120,000 Administrative 144,000 264,000 Net operating income $ 81,000 On average, a book sells for $70. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9PB: Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May,...

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Sam's Bookstore
Income Statement
For Quarter Ended March 31
Sales		$ 910,000
Cost of goods sold		565,000
Gross margin		345,000
Selling and administrative expenses
Selling	$ 120,000
Administrative	144,000	264,000
Net operating income		$ 81,000

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