Question: Exercise 5-4 Computing and Using the CM Ratio [LO5-3] Exercise 5-4 Computing and Using the CM Ratio [LO5-3) Last month when Holiday Creations, Inc., sold

Exercise 5-4 Computing and Using the CM Ratio [LO5-3]

Exercise 5-4 Computing and Using the CM Ratio [LO5-3) Last month when Holiday Creations, Inc., sold 38,000 units, total sales were $298,000, total variable expenses were $211,580, and fixed expenses were $36,800. 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 $2.000? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income $ 580

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