The contribution format income statement for Huerra Company for last year is given below: Sales Variable expenses Contribution margin Total $ 1,006,000 Unit $ 50.30 603,600 30.18 402,400 20.12 Fixed expenses 322,400 16.12 Net operating income 80,000 4.00 Income taxes @ 40% 32,000 1.60 Net income $ 48,000 $ 2.40 The company had average operating assets of $509,000 during the year.