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

Multiple Choice

An income statement for Crandall's Bookstore for the first quarter of the current year is presented below:

On average, a book sells for $50. Variable selling expenses are $5.50 per book, with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales, with the remainder being fixed.
-What is the cost formula for operating expenses with X equal to the number of books sold?

A) Y = $84,000 + $7.00X.
B) Y = $84,000 + $8.50X.
C) Y = $98,000 + $7.00X.
D) Y = $98,000 + $8.50X.