An income statement for Sam's Bookstore for the first quarter of the year is presented below:
|For Quarter Ended March 31|
|Cost of goods sold||680,000|
|Selling and administrative expenses|
|Net operating income||$||66,000|
On average, a book sells for $70. 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 contribution margin for Sam's Bookstore for the first quarter is