If the contribution margin is $5,000, variable cost is $4,000, and net operating income is $2,000. The fixed cost is $3,000.
Before deducting any expenditures for financing or taxes, net operational income assesses the profitability of an income-producing asset. To calculate NOI, deduct all property-related operating expenses from all revenue received at the property.
Increases or decreases in sales or production do not affect fixed costs, which are costs that do not change. This is true because they are not directly involved in the process of creating a product or offering a service.
Net operating income = contribution margin - fixed cost
Fixed cost = contribution margin - net operating income
Fixed cost = $5,000 - $2,000
= $3,000
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