1. **Stating the problem:** We are given financial data including sales, variable expenses, contribution margin, fixed expenses, and net operating income. We want to understand how these values relate and verify the net operating income. 2. **Formula used:** The key formula is: $$\text{Net Operating Income} = \text{Contribution Margin} - \text{Fixed Expenses}$$ Also, contribution margin is calculated as: $$\text{Contribution Margin} = \text{Sales} - \text{Variable Expenses}$$ 3. **Step-by-step solution:** - Given sales = 20,000 and variable expenses = 12,000, calculate contribution margin: $$20,000 - 12,000 = 8,000$$ - Given fixed expenses = 6,000, calculate net operating income: $$8,000 - 6,000 = 2,000$$ 4. **Explanation:** - Sales represent total revenue. - Variable expenses change with sales volume. - Contribution margin shows how much sales contribute to covering fixed expenses and profit. - Fixed expenses remain constant regardless of sales. - Net operating income is the profit after covering all expenses. 5. **Verification:** The net operating income calculated matches the given value of 2,000, confirming the data is consistent. **Final answer:** Net operating income is $2,000, calculated as contribution margin minus fixed expenses.