Assume the following (1) selling price per unit-$25, (2) variable expense per unit = $13, (3) unit sales=2,580, and (4) total fixedexpenses = $25,000. Given these four assumptions, net operating income must be:Multiple Choice$8,540.O $39,500.O$27,580$5.960.

The contribution margin is calculated as the difference between the sales and variable costs. The…

Answered: Assume the following (1) selling price…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume the following (1) selling price per unit - $25, (2) variable expense per unit-$13, (3) unit sales - 2,580, and (4) total fixed expenses = $25,000. Given these four assumptions, net operating income must be: Multiple Choice $8,540. $39,500.