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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 (6,700 units) $ 268,000
Variable expenses 140,700
Contribution margin 127,300
Fixed expenses 75,800
Net operating income $ 51,500

If the company sells 7,100 units, its net operating income should be closest to:

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Answer #1
Sales $ 284,000 (268000/6700)*7100
Less: Variable expenses $ 149,100 (140700/6700)*7100
Contribution margin $ 134,900
Less: Fixed expenses $    75,800
Net operating income $    59,100
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