Noel Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (3,000 units) $120,000
Variable expenses $90,000
Contribution margin $30,000
Fixed expenses $21,000
Net operating income $9,000
If sales decline to 2,900 units, the net operating income would be closest to:.
a. $1.000.
b. $29,000.
c. $8.000.
d. $8.700.

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Six years ago, an 80-kw diesel electric set cost $160,000. the cost index for this class of equipment six years ago was 187 and is now 194. the cost-capacity factor is 0.6. the plant engineering staff is considering a 120-kw unit of the same general design to power a small isolated plant. assume we want to add a precompressor, which (when isolated and estimated separately) currently costs $13291. determine the total cost of the 120-kw unit. (hint: skip $ and comma symbols)

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