Answer:
The present yearly net operating income or loss is - $90,000
Explanation:
The computation of present yearly net operating income or loss is shown below:
Net income / Net loss = Sales - Variable cost - Fixed cost
The sales - variable cost is equal to contribution
Than, Contribution - fixed cost = net income
where,
Sales = Present Sales volume × Selling price
= 15,000 × $70
= $1,050,000
Variable cost = Present volume × Variable cost per unit
= 15,000 × $40
= $600,000
And, fixed cost = $540,000
So, net income / loss = $1,050,000 - $600,000 - $540,000
= - $90,000
Hence, the amount shows negative which means the company has suffered a loss of $90,000
Thus, the present yearly net operating loss is - $90,000
