Answer:
$24,800
Explanation:
Calculation for what the net operating income would be closest to
First step is to calculate the Selling price
Selling price $43 per units
($280,000 ÷ 7,000 units=$40 per unit)
($40 per unit + $3 per unit)
Second step is to calculate the Variable cost per price
Variable cost per price $26 per units
($182,000 ÷ 7,000 units)
Third step is to calculate the Unit sales
Unit sales 6,400 units
(7,000 units − 600 units)
Now let calculate the net operating income
Contribution margin $108,800
[($40 per unit-$26 per units)*6,400 units]
($17*6,400 units)
Less Fixed Expenses $84,000
Net operating income $24,800
($108,800-84,000)
Therefore the net operating income would be closest to: $24,800
