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Park Inc., a company that produces and sells a single product, has provided its contribution format income statement for February: Sales ( based on 4,200

Park Inc., a company that produces and sells a single product, has provided its contribution format income statement for February:

Sales (based on 4,200 units)

$

154,400

Variable expenses

100,000

Contribution margin

?

Fixed expenses

42,500

Net operating income

$

?

Questions:

  1. Based on sales of 4,200 units, what should be its total contribution margin?
  2. Based on sales of 4,200 units: what should be its Net Operating Income?
  3. If the company sold 4,000 units, what should be its total contribution margin?

d. If the company sold 4,000 units, what should be its Net Operating Income?

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