Contribution to net operating income


Problem: The following information pertains to Nova Company's Cost-Volume-Profit relationships:

Breakeven Point in Units Sold    1,000
Variable Expenses per Unit        $500
Total Fixed Costs                $150,000

How much will be contributed to Net Operating Income by the 1,001st unit sold?

A) $650.

B) $500.

C) $150.

D) $ 0.

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Accounting Basics: Contribution to net operating income
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