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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 (6,600 units) $429,000 Variable

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

Sales (6,600 units) $429,000
Variable expenses

297,000

Contribution margin 132,000
Fixed expenses

103,500

Net operating income

$28,500

If the company sells 6,500 units, its net operating income should be closest to:

1.$26,500

2.$28,500

3.27,979

4.$24,000

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