Question 12 of 50 Next QuestionUnsaved change Moving to the next question prevents changes to this answer. Nocum Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (3,000 units) $ 120,000 Variable expenses 90,000 Contribution margin 30,000 Fixed expenses 21,000 Net operating income $ 9,000 If sales decline to 2,900 units, the net operating income would be closest to:

$8,000

Explanation:

For the computation of net operating income first, we need to find out the contribution margin per unit and total contribution margin which is shown below:-

Contribution margin per unit = Contribution margin ÷ Sales in units

= ($30,000 ÷ 3,000)

= $10 per unit

Total Contribution margin at 2900 units = Contribution margin per unit × Reduced units

= $10 × 2,900

= $29,000

Net operating income =

Total Contribution margin - Fixed expenses

= $29,000 - $21,000

= $8,000

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

a.