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Souza Incorporated, which produces and sells a single product, has provided its contribution format ...

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Souza Incorporated, which produces and sells a single product, has provided its contribution format ...

Souza Incorporated, 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:

▸ $5,513

▸ $6,300

▸ $300

▸ -$4,700

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Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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