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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
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? |
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