Question: Exercise 6-4 Computing and Using the CM Ratio (L06-3] Last month when Holiday Creations, Inc., sold 35,000 units, total sales were $313,000, total variable expenses

Exercise 6-4 Computing and Using the CM Ratio (L06-3] Last month when Holiday Creations, Inc., sold 35,000 units, total sales were $313,000, total variable expenses were $253,530, and fixed expenses were $36,000. 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 total sales by $2,500? (Do not round Intermediate calculations.) 1919 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!

accounting Exercise 6-4 Computing and using the CM Ratio (L06-3) Last month when Holiday Creations, Inc., sold 39,000 units, total sales were $282,000, total variable expenses were $214,320, and...

2 parts Exercise 6-4 Computing and using the CM Ratio (L06-3) Last month when Holiday Creations, Inc., sold 36,000 units, total sales were $293,000, total variable expenses were $210,960, and fixed...

2 1.55 points Exercise 6-4 Computing and using the CM Ratio (L06-3) Last month when Holiday Creations, Inc., sold 38,000 units, total sales were $293,000, total variable expenses were $208,030, and...

Exercise 6-4 Computing and using the CM Ratio (L06-3) Last month when Holiday Creations, Inc., sold 39,000 units, total sales were $310,000 total variable expenses were $226,300, and fixed expenses...

2 0.62 points - eBook Hint Print Seved Exercise 6-4 Computing and Using the CM Ratio [LO6-3] Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable...

BRIEF EXERCISE 64 Computing and Using the CM Ratio [ LO3 ] Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed...

Exercise 6-1 The Effect of Changes in Activity on Net Operating Income [LO6-1) Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,000 units)...

Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (9,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total...

Exercise 6-1 The Effect of Changes in Activity on Net Operating Income (LO6-1) Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,000 units)...

y Exercise 6-4 Computing and Using the CM Ratio [LO6-3] Last month when Holiday Creations, Inc., sold 42,000 units, total sales were $283,000, total variable expenses were $206,590, and fixed...

Recently, the role of managers has changed and today more are being called to be career coaches for their employees. What suggestions would you give to managers about what the new role involves? What...

a. Assume that there is no transfer of learning between time periods and that, at most, one batch is produced per time period. Solve the production-planning problem of minimizing the sum of...

The manager of a Food King supermarket is reconsidering his service policies. He currently has six checkers working during the busy period, when customers arrive at the rate of X = 60 per hour, but...

A licensee is the property manager for a shopping center. The shopping center owner tells the distrusts the technology. The licensee discusses this with the owner, but eventually complies A . care. B...

How has a company like Facebook influenced communication in the 21st century (Chapter 5)?

Many employees, including managers, complain about organizational communications. What are some of the complaints, and how can communications be improved?

E-mail is preferred over oral communication at work, and texting is increasingly used. What are the pros and cons of oral versus e-mail or text communication? Which form of communication do you use...