Souza Inc, which produces and sells a single product, has provided its contribution format income statement for October.

Sales (4,000 units)	$	88,000
Variable expenses		40,000
Contribution margin		48,000
Fixed expenses		41,700
Net operating income	$	6,300

If the company sells 3,500 units, its net operating income should be closest to:

Multiple Choice

$5,513

-$4,700

$6,300

$300