Answer:
Net operating income $35,400
Explanation:
We know, the contribution margin income statement is different from the financial income statement. The following income statement shows the contribution margin method.
Jilk Inc.
Contribution margin format income statement.
Sales $144,000
Less: variable expense $57,600 (Note 1)
Contribution margin $86,400 (Note 2)
Less: fixed expense $51,000
Net operating income $35,400
Note 1: variable expense = Sales revenue - Contribution margin
variable expense = $144,000 - $86,400
variable expense = 57,600
Note 2: contribution margin = Sales revenue × Contribution margin ratio
Contribution margin = $144,000 × 60%
Contribution margin = $86,400.
