The contribution format income statement for Huerra Company for last year is given below: Total Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes 40% Net income $ 994,000 596,400 Unit $ 49.70 29.82 397,600 19.88 319,600 15.98 78,000 3.90 31,200 1.56 $ 46,800 $ 2.34 The company had average operating assets of $501,000 during the year.