Question: Exercise 6-4 Computing and Using the CM Ratio (LO6-3] Last month when Holiday Creations, Inc., sold 36,000 units, total sales were $300,000, total variable expenses

Exercise 6-4 Computing and Using the CM Ratio (LO6-3] Last month

Exercise 6-4 Computing and Using the CM Ratio (LO6-3] Last month when Holiday Creations, Inc., sold 36,000 units, total sales were $300,000, total variable expenses were $228,000, and fixed expenses were $36,400. 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 $2,900? (Do not round intermediate calculations.) % 1. Contribution margin ratio 2. Estimated change in net operating income

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