Oslo company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):
Sales: $35,000
Variable expenses: $21,000
Contribution margin: $14,000
Fixed expenses: $8,400
Net operating income: $5,600
If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? Note: Round "per unit" calculations to 2 decimal places.
Options:
A. $5,340.00
B. $5,860.00
C. $6,200.00
D. $4,940.00
