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:

Multiple Choice

$8,000

$29,000

$1,000

$8,700