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 $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.
-The net operating income using the contribution approach for the first quarter is:

A) $270,000
B) $180,000
C) $144,000
D) $66,000