Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March. Sales (6,600 units) Variable expenses $429,000 297,000 Contribution margin 132,000 Fixed expenses 103,500 Net operating income $28,500 If the company sells 6,500 units, its net operating income should be: a. $26,500 b. $24,000 c. $28,500 d. $27,979

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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Ofarrell Corporation, a company that produces and sells a single product, has
provided its contribution format income statement for March.
Sales (6,600 units)
Variable expenses
$429,000
297,000
Contribution margin 132,000
Fixed expenses
103,500
Net operating income $28,500
If the company sells 6,500 units, its net operating income should be:
a. $26,500
b. $24,000
c. $28,500
d. $27,979
Transcribed Image Text:Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March. Sales (6,600 units) Variable expenses $429,000 297,000 Contribution margin 132,000 Fixed expenses 103,500 Net operating income $28,500 If the company sells 6,500 units, its net operating income should be: a. $26,500 b. $24,000 c. $28,500 d. $27,979
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