Question

Vivian's Violins has sales of $326,000, contribution margin of $184,000 and fixed costs total $85,000. Vivian's Violins net operating income is Blank______. Multiple choice question. $241,000 $57,000 $99,000

Answer 1

Based on the calculations, Vivian's Violins net operating income is equal to: D. $99,000.

How to calculate net operating income?

Mathematically, the net operating income of an individual or business firm can be calculated by using this formula:

Net operating income = Contribution margin - Total fixed costs

Given the following data:

• Sales = $326,000

• Contribution margin = $184,000

• Fixed costs total $85,000

Substituting the given parameters into the formula, we have;

Net operating income = $184,000 - $85,000

Net operating income = $99,000.

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