hw 12.5

The contribution format income statement for Huerra Company for last year is given below:

	Total		Unit
Sales	$	994,000	$	49.70
Variable expenses		596,400		29.82
Contribution margin		397,600		19.88
Fixed expenses		315,600		15.78
Net operating income		82,000		4.10
Income taxes @ 40%		32,800		1.64
Net income	$	49,200	$	2.46

The company had average operating assets of $495,000 during the year.