Answer:
Net operating income= $26,140
Explanation:
Giving the following information:
Fixed costs= $23,000
The contribution margin ratio is 63%.
Sales= $78,000
<u>First, we need to calculate the contribution margin:</u>
Contribution margin= contribution margin ratio*sales
Contribution margin= 0.63*78,000
Contribution margin= 49,140
Net operating income= 49,140 - 23,000= $26,140
Correct being that he is in high school!<span />
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