Please provide the answer to this general accounting question with proper steps. Nova Systems Inc. had the following data for May:CategoryAmountSales (6,200 units)$372,000Variable expenses$198,400Contribution margin$173,600Fixed expenses$104,000Net operating income $69,600If Nova Systems sells 6,000 units, what will the new netoperating income be?

Step 1: Define Net Operating Income (NOI)Net operating income (NOI) is the income a company…

Answered: Nova Systems Inc. had the following…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CE

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Nova Systems Inc. had the following data for May: Category Amount Sales (6,200 units) $372,000 Variable expenses $198,400 Contribution margin $173,600 Fixed expenses $104,000 Net operating income $69,600 If Nova Systems sells 6,000 units, what will the new net operating income be?