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The company had average operating assets of $506,000 during the year.

The contribution format income statement for Huerra Company for last year is given below: Total Sales Variable expenses Unit $1,006,000 $50.30 603,600 30.18 Contribution margin Fixed expenses 402,400 20.12 322,400 16.12 Net operating income Income taxes @ 40% 0,000 4.00 2,000 1.60 Net income $ 48,000 S 2.40