Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format...
|
Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March. |
| Sales (6,600 units) | $429,000 |
| Variable expenses |
297,000 |
| Contribution margin | 132,000 |
| Fixed expenses |
103,500 |
| Net operating income |
$28,500 |
| If the company sells 6,500 units, its net operating income should be closest to: |
1.$26,500
2.$28,500
3.27,979
4.$24,000
Homework Answers
Contribution per unit is 20.(65-45)
Contribution= 20*6500=130000-103500=26500.
Option 1 is correct
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