Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses...
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Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses were $136,120, and fixed expenses were $37,000. 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 675 units and total sales by $2,700? (Do not round intermediate calculations.) 1. Contribution margin ratio :% 2. Estimated change in net operating income Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses were $136,120, and fixed expenses were $37,000. 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 675 units and total sales by $2,700? (Do not round intermediate calculations.) 1. Contribution margin ratio :% 2. Estimated change in net operating income
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Answer rating: 100% (QA)
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Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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