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Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March. Sales (6,500 units) $403,000 Variable

Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March.

Sales (6,500 units) $403,000
Variable expenses

273,000

Contribution margin 130,000
Fixed expenses

103,500

Net operating income

$26,500

If the company sells 6,400 units, its net operating income should be closest to:

$26,500

$22,000

$24,500

$25,979

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