The contribution format income statement for Huerra Company for last year is given below:

	Total		Unit
Sales	$	1,004,000	$	50.20
Variable expenses		602,400		30.12
Contribution margin		401,600		20.08
Fixed expenses		323,600		16.18
Net operating income		78,000		3.90
Income taxes @ 40%		31,200		1.56
Net income	$	46,800	$	2.34

The company had average operating assets of $497,000 during the year.