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Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November. Sales (6,600 units) Variable expenses Contribution margin Fixed expenses Net operating income If the company sells 6,500 units, its net operating income should be closest to: Note: Do not round intermediate calculations. Multiple Choice O O о $27,979 $26,500 $28.500 $ 402,600 270,600 132,000 103,500 $ 28,500 $24,000

Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November. Sales (6,600 units) Variable expenses Contribution margin Fixed expenses Net operating income If the company sells 6,500 units, its net operating income should be closest to: Note: Do not round intermediate calculations. Multiple Choice O O о $27,979 $26,500 $28.500 $ 402,600 270,600 132,000 103,500 $ 28,500 $24,000

FINANCIAL ACCOUNTING
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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### Contribution Format Income Statement **Rovinsky Corporation**, a company that produces and sells a single product, has provided its contribution format income statement for November. The statement is as follows: - **Sales (6,600 units):** $402,600 - **Variable expenses:** $270,600 - **Contribution margin:** $132,000 - **Fixed expenses:** $103,500 - **Net operating income:** $28,500 #### Question If the company sells 6,500 units, its net operating income should be closest to: #### Note Do not round intermediate calculations. ### Multiple Choice Options 1. $27,979 2. $26,500 3. $28,500 4. $24,000 This format is typically used in management accounting to analyze the impacts of sales volume, product costs, and operating expenses on a firm's profitability.
Transcribed Image Text:### Contribution Format Income Statement **Rovinsky Corporation**, a company that produces and sells a single product, has provided its contribution format income statement for November. The statement is as follows: - **Sales (6,600 units):** $402,600 - **Variable expenses:** $270,600 - **Contribution margin:** $132,000 - **Fixed expenses:** $103,500 - **Net operating income:** $28,500 #### Question If the company sells 6,500 units, its net operating income should be closest to: #### Note Do not round intermediate calculations. ### Multiple Choice Options 1. $27,979 2. $26,500 3. $28,500 4. $24,000 This format is typically used in management accounting to analyze the impacts of sales volume, product costs, and operating expenses on a firm's profitability.
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