8

Florek Inc. produces and sells a single product. The company has provided its contribution format income statement for March.

Sales (5,600 units)	$	224,000
Variable expenses		117,600
Contribution margin		106,400
Fixed expenses		86,700
Net operating income	$	19,700

If the company sells 5,800 units, its net operating income should be closest to:

a	$23,500
b	$19,700
c	$27,700
d	$20,404 Which is correct?