An Income Statement for Sam's Bookstore for the First Quarter

Multiple Choice

An income statement for Sam's Bookstore for the first quarter of the year is presented below: 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 cost formula for selling and administrative expenses with "X" equal to the number of books sold is:

A) Y = $116,300 + $4.00X
B) Y = $116,300 + $5.95X
C) Y = $177,700 + $5.95X
D) Y = $177,700 + $7.90X