1. Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March below. If the company sells 5,400 units, its net operating income should be closer to:

Sales(5,000 units) $205,000

Varible expense 125,000

Contribution Margin 80,000

Fixed Expense 62,400

Net Operating Income $17,600

2. Arthur Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $300,000 and the variable expenses are 45% of sales. The actual profit is?