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Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 300,000 Per Unit $ 40 120,000 16 180,000 60,000
Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 300,000 Per Unit $ 40 120,000 16 180,000 60,000 $ 24 $ 120,000 If the company decides to pay a sales commission of 2.5% for each unit sold above the break-even point, what net operating income will it earn if it sells 7,000 units? Multiple Choice $103,500 $101,000 $108,000
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