Answer:
$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