[meg4085]

Images.com is a small Internet retailer of high-quality posters. The company has $760,000 in operating assets and fixed expenses of $168,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5 million per year. The company’s contribution margin ratio is 12%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 12 cents.

I'm confused on how to get the Net operating income?

Sales Net operating
Income
$ 4,500,000 $ 372,000 $ 760,000 48.95%
$ 4,600,000 $ $ 760,000 %
$ 4,700,000 $ $ 760,000 %
$ 4,800,000 $ $ 760,000 %
$ 4,900,000 $ $ 760,000 %
$ 5,000,000 $ $ 760,000 %