The University Store, Inc. is the major supplier of books for the four area colleges. An income statement for thefirst quarter of 2007 is presented below:

University Store Inc,

Income Statement

For the Quarter Ended March 31, 2007

Sales 800,000

Cost of Goods Sold 440,000

Gross Margin 360,000

Less Operating Expenses:

Selling 105,000

Administrative 135,000 240,000

Net Income 120,000

On average, a book sells for P40. Variable selling expenses are P3 per book; the remaining selling expenses arefixed. The variable administrative expenses are 5% of sales; the remainder is fixed.

12 The contribution margin for the University Store for the first quarter of 2007 is

13 The net income computed using the contribution approach for the first quarter of 2007 is

14 If 45,000 books are sold during the second quarter of 2007, the company's contribution margin would equal