Sales (7,200 units)$ 338, 400Variable expensesContribution marginFixed expenses194, 400144, 000103, 500Net operating income$ 40,500If the company sells 7100 units, its net operating income should be closest to: (Do not round intermediate calculations.)Multiple ChoiceS39,979$38,500$40,500$36,000

Formula: Sale price per unit =Total sales revenue / Sales units

Sales (7,200 units) $ 338, 400 Variable expenses 194, 400 144,000 103, 500 $ 40, 500 Contribution margin Fixed expenses Net operating income If the company sells 7,00 units, its net operating income should be closest to: (Do not round intermediate calculations.) Multiple Choice

Sales (7,200 units) $ 338, 400 Variable expenses 194, 400 144,000 103, 500 $ 40, 500 Contribution margin Fixed expenses Net operating income If the company sells 7,00 units, its net operating income should be closest to: (Do not round intermediate calculations.) Multiple Choice

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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Question

Sales (7,200 units)
$ 338, 400
Variable expenses
Contribution margin
Fixed expenses
194, 400
144, 000
103, 500
Net operating income
$ 40,500
If the company sells 7100 units, its net operating income should be closest to: (Do not round intermediate calculations.)
Multiple Choice
S39,979
$38,500
$40,500
$36,000

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