Gase Mehta Co. (GMC) produces and sells a single product called "Wyatt". GMC has provided its contribution format income statement for November.

Sales (7,200 units)	$ 338,400
Variable expenses	194,400
Contribution margin	144,000
Fixed expenses	103,500
Net operating income	$ 40,500

If the company sells 7,100 units, its net operating income should be closest to: (Do not round intermediate calculations.)

Multiple Choice

$40,500

$39,979

$38,500

$36,000