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 $ 930,000 Cost of goods sold 655,000 Gross margin 275,000 Selling and administrative expenses Selling $ 105,000 Administrative 114,000 219,000 Net operating income $ 56,000 On average, a book sells for $60. 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 contribution margin for Sam's Bookstore for the first quarter is:

$160,300

Explanation:

Calculation for what The contribution margin for Sam's Bookstore for the first quarter is:

Sales revenue $ 930,000

Less: Variable costs

Cost of goods sold$ 655,000

Variable selling expenses ( 930000/60)*5$ 77,500

Variable administrative expenses (930,000*4%)$ 37,200

Total variable expenses $769,700

Contribution margin $160,300

($930,000-$769,700)

Therefore The contribution margin for Sam's Bookstore for the first quarter is:$160,300

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.