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Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000,
total variable expenses were $129,560, and fixed expenses were $36,600. Required: 1. What is
the companys contribution margin (CM) ratio? 2. What is the estimated change in the companys
net operating income if it can increase sales volume by 625 units and total sales by $2,500? (Do
not round intermediate calculations.)

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Last month when Holiday Creations Incorporated sold 41000.pdf

  • 1. Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses were $129,560, and fixed expenses were $36,600. Required: 1. What is the companys contribution margin (CM) ratio? 2. What is the estimated change in the companys net operating income if it can increase sales volume by 625 units and total sales by $2,500? (Do not round intermediate calculations.)