Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $282,000, total variable expenses were $203,040, and fixed expenses were $37,300.

Required:

1. What is the company’s contribution margin (CM) ratio?

2. What is the estimated change in the company’s net operating income if it can increase total sales by $2,400? (Do not round intermediate calculations.)

Answer rating: 100% (QA)

To calculate the contribution margin CM ratio first we need to calculate the contribution margin per ... View the full answer