“An income statement for Sam’s Bookstore for the first quarter of 19×2 is presented below: Sam’s Bookstore Income Statement For Quarter Ended March 31, 1992 Sales $900,000 Cost of Goods Sold 630,000 Gross Margin 270,000 Less Operating Expenses Selling $102,000 Administration 102,000 204,000 Net Income $ 66,000 ÍÍÍÍÍÍÍÍ On average, a book sells for $50. 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. 77. The contribution margin for Sam’s Bookstore for the first quarter of 19×2 is: a. $180,000. b. $774,000. c. $144,000. d. $756,000.”,”377. The contribution margin for Sam’s bookstore for the first quarter of 19×2: Sales 900,000- Total VC: Cost of GS 630,000Selling 90,000 (90,000/50) = 18,000, 18,000 x 5Admin. 36,000Total Variable Costs 756,000 CM 144

“An income statement for Sam’s Bookstore for the first quarter of 19×2 is presented below: Sam’s Bookstore Income Statement For Quarter Ended March 31, 1992 Sales $900,000 Cost of Goods Sold 630,000 Gross Margin 270,000 Less Operating Expenses Selling $102,000 Administration 102,000 204,000 Net Income $ 66,000 ÍÍÍÍÍÍÍÍ On average, a book sells for $50. 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. 77. The contribution margin for Sam’s Bookstore for the first quarter of 19×2 is: a. $180,000. b. $774,000. c. $144,000. d. $756,000.”,”377. The contribution margin for Sam’s bookstore for the first quarter of 19×2: Sales 900,000- Total VC: Cost of GS 630,000Selling 90,000 (90,000/50) = 18,000, 18,000 x 5Admin. 36,000Total Variable Costs 756,000 CM 144

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