Beacon Industries, a company that manufactures a single product, has provided its contribution format income statement for March. Sales (5,400 units): $270,000 Variable expenses: $162,000 Contribution margin: $108,000 Fixed expenses: $81,000 Net operating income: $27,000 If the company sells 5,600 units, its net operating income should be: A. $27,000 B. $28,000 C. $31,000 D. $33,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...
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Beacon Industries, a company that manufactures a single product, has provided
its contribution format income statement for March.
Sales (5,400 units): $270,000 Variable expenses: $162,000 Contribution margin:
$108,000 Fixed expenses: $81,000 Net operating income: $27,000
If the company sells 5,600 units, its net operating income should be:
A. $27,000
B. $28,000
C. $31,000
D. $33,000
Transcribed Image Text:Beacon Industries, a company that manufactures a single product, has provided its contribution format income statement for March. Sales (5,400 units): $270,000 Variable expenses: $162,000 Contribution margin: $108,000 Fixed expenses: $81,000 Net operating income: $27,000 If the company sells 5,600 units, its net operating income should be: A. $27,000 B. $28,000 C. $31,000 D. $33,000
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