Question: 3 Exercise 5-4 (Algo) Computing and Using the CM Ratio [LO5-3] Last month when Holiday Creations, Incorporated, sold 42,000 units, total sales were $168,000,

3 Exercise 5-4 (Algo) Computing and Using the CM Ratio [LO5-3] Last month when Holiday Creations, Incorporated, sold 42,000 units, total sales were $168,000, total variable expenses were $120,960, and fixed expenses were $38,600. 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 sales volume by 450 units and total sales by $1,800? (Do not round intermediate calculations.) 1. Contribution margin ratio. 2. Estimated change in net operating income

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Exercise 5-4 (Algo) Computing and using the CM Ratio [LO5-3] Last month when Holiday Creations, Incorporated, sold 42,000 units, total sales were $168,000, total variable expenses were $117,600, and...

Milet Company's contribution format income statement for the most recent month is shown below. Required: (Consider each case independently): 1. What is the revised net operating income if unit sales...

Exercise 5-4 (Algo) Computing and Using the CM Ratio (LO5-3] Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses were $116,440, and...

Current Attempt in Progress Vaughn Industries purchases Solvate, a chemical compound used in several of its products, from ChemMaster. ChemMaster has just increased the list price of Solvate to $6.00...

Exercise 5-4 (Algo) Computing and using the CM Ratio (LO5-3) Last month when Holiday Creations, Incorporated, sold 36,000 units, total sales were $144,000, total variable expenses were $110,880, and...

Exercise 5-4 (Algo) Computing and Using the CM Ratio [LO5-3] Last month when Holiday Creations, Incorporated, sold 39,000 units, total sales were $156,000, total variable expenses were $118,560, and...

please help!! Exercise 5-4 (Algo) Computing and Using the CM Ratio (LO5-3] Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses were...

Use the given frequency distribution to construct a cumulative frequency distribution. List the values that would show up in the new column. Height (in inches) column chart ( ( Class Frequency, f...

Please Help me with this entire question . Thank you Exercise 5-4 (Algo) Computing and Using the CM Ratio [LO5-3] Last month when Holiday Creations, Incorporated, sold 39,000 units, total sales were...

Determine the speed of the box after sliding it 6 meters on the slope. 400N = PA 30 mosokg 30

The following terms are often used to describe leases: a. Direct b. Full-service c. Operating d. Financial e. Rental f. Net g. Leveraged h. Sale and lease-back i. Full-payout Match one or more of...

8. Society is not a stakeholder of an organizationTrue or False

A hula hoop and solid disc of equal radii are rolled, from rest and without slipping, down an incline plane. Which one will reach the bottom of the inclined plane first? Explain.

What sequence is followed in preparing the budgets that constitute the master budget?

In preparing a budgeted balance sheet, (a) plant assets are determined by analyzing the capital expenditures budget and the balance sheet from the beginning of the budget period, (b) liabilities are...

What are the three primary categories of budgets in the master budget?