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  3. an income statement for sam's bookstore for the fi

An income statement for Sam's Bookstore for the first quarter of the year is presented...

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Accounting

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

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

Sam's Bookstore
Income Statement
For Quarter Ended March 31
Sales $ 910,000
Cost of goods sold 530,000
Gross margin 380,000
Selling and administrative expenses
Selling $ 113,000
Administration 130,000 243,000
Net operating income $ 137,000

On average, a book sells for $70. Variable selling expenses are $5 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:

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