Nocum Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (3,000 units)$120,000Variable expenses 90,000Contribution margin 30,000Fixed expenses 21,000Net operating income$9,000 If sales decline to 2,900 units, the net operating income would be closest to:
A. $8,700
B. $29,000
C. $1,000
D. $8,000
Answer: D
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