Exercise 5 4 Computing and Using the CM Ratio LO 5 3 Last month when Holiday Creations, Inc , sold 39,000 units, total sales were $311,000, total variable expenses were $233,250, and fixed expenses were $35,800 Required 1 What is the companys contribution margin (CM) ratio Contribution margin ratio 2 Estimate the change in the companys net operating income if it were to increase its total sales by $1,800 Estimated change in net operating income

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Question: Exercise 5-4 Computing and Using the CM Ratio [LO 5-3] Last month when Holiday Creations, Inc., sold 39,000 units, total sales were $311,000, total variable

Exercise 5-4 Computing and Using the CM Ratio [LO 5-3]

Last month when Holiday Creations, Inc., sold 39,000 units, total sales were $311,000, total variable expenses were $233,250, and fixed expenses were $35,800.

Required:

What is the companys contribution margin (CM) ratio?

Contribution margin ratio

Estimate the change in the companys net operating income if it were to increase its total sales by $1,800.

Estimated change in net operating income

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