Answer:
$2,000 is the expected operating income.
Explanation:
Given:
The company's flexible budget = 14000 units.
Total contribution margin = $42,000.
Fixed costs = $40,000.
The company produces and sells 26,000 units.
Now, to find the operating income expected:
So, to get the operating income we deduct the fixed costs from the total contribution margin:

Therefore, $2,000 is the expected operating income.