The University Store, Inc. is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below: University Store, Inc. Income Statement For the Quarter Ended March 31 Sales $ 800,000 Cost of goods sold 560,000 Gross margin 240,000 Selling and administrative expenses Selling $ 100,000 Administration 110,000 210,000 Net operating income $ 30,000 On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed. The net operating income computed using the contribution approach for the first quarter is: a. $30,000 b. $180,000 c. $140,000 d. $0In a job-order costing system, the use of indirect materials that have been used for producti recorded to: A) Work in Process inventory: B) Finished Goods inventory. C) Raw Materials inventory. D) Manufacturing Overhead.