Question
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
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 decline to 2,900 units, the net operating income would be closest to:
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
0077664078, 978-0077664077, 78111048, 978-0078111044
