Answer:
Net operating income= $31,000
Explanation:
<u>First, we need to calculate the total fixed costs:</u>
Total fixed costs= 7*11,000= 77,000
<u>Now, the ner income for 13,500 units:</u>
Sales= 18*13,500= 243,000
Total variable cost= 13,500*10= (135,000)
Contribution margin= 108,000
Total fixed costs= (77,000)
Net operating income= $31,000