Nocum Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.

Sales (3,000 units)	$ 120,000
Variable expenses	90,000
Contribution margin	30,000
Fixed expenses	21,000
Net operating income	$ 9,000

If sales volumes decline to 2,900 units, the net operating income would be closest to:

Multiple Choice

• $8,700

• $1,000

• $29,000

• $8,000