Business: Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November. Sales (6,900 units) $400,200 Variable expenses 262,200 Contribution margin 138,000 Fixed expenses 103,500 Net operating income $34,500 If the company sells 6,800 units, its net operating income should be closest to: a. $33,979 b. $32,500 c. $34,500

Decrease. Because going to left means is negative on a graph....

Rovinsky Corporation, a company that produces

arianaw6735

18.04.2021

b. $32,500

Explanation:

The computation of the net operating income is shown below:

Sales ($400,200 ÷ 6,900 × 6,800) $394,400

Less: variable expense ($262,200 ÷ 6,900 × 6,800) -$258,400

Contribution margin $136,000

less: fixed cost - $103,500

Net operating income $32,500

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