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Page 12 of 12 19 Katka Corporation is a wholesaler that sells a single product and maintains a stable cost structure. However, the demand for

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Page 12 of 12 19 Katka Corporation is a wholesaler that sells a single product and maintains a stable cost structure. However, the demand for their product fluctuates according to the season. Management has provided the following data for two months. September October November Net operating income (Loss) S (43,000) $ 47,000 Selling price per unit $ 180 $ 180 Sales units 4,000 5,000 Gross margin $ 307,000 $415,000 If the sales in November increases by 12% from October, the best estimate of the net operating income in November is: A. $ 52,640 B. $ 226,000 c. S 92,000 D. $ 101,000 E. None of the above

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