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goblinko [34]
2 years ago
14

Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement

for November. Sales (7,600 units) $ 387,600 Variable expenses 235,600 Contribution margin 152,000 Fixed expenses 103,500 Net operating income $ 48,500 If the company sells 7,500 units, its net operating income should be closest to: (Do not round intermediate calculations.) Multiple Choice $44,000 $46,500 $47,979 $48,500
Business
1 answer:
matrenka [14]2 years ago
8 0

Answer:

Net operating income= 46,500

Explanation:

<u>First, we need to calculate the unitary contribution margin:</u>

Unitary contribution margin= 152,000 / 7,600

Unitary contribution margin= $20

Now, the net income for 7,500 units:

Total contribution margin= 20*7,500= 150,000

Fixed expenses= (103,500)

Net operating income= 46,500

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