Answer:
Net operating income= $1,587,000
Explanation:
Giving the following information:
Annual production rate 38,000 unit per year
Selling Price $80 unit per unit
<u>We will make a contribution margin income statement to determine the gain/loss:</u>
Sales= 38,000*80= 3,040,000
Total variable cost= (1,200,000 + 53,000)= (1,253,000)
Contribution margin= 1,787,000
Total fixed costs= (200,000)
Net operating income= 1,587,000
