Last month when Holiday Creations, Inc., sold 40,000 units, total sales were $160,000, total variable expenses...
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Last month when Holiday Creations, Inc., sold 40,000 units, total sales were $160,000, total variable expenses were $128,000, and fixed expenses were $35,100. 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 575 units and total sales by $2,300? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income % Last month when Holiday Creations, Inc., sold 40,000 units, total sales were $160,000, total variable expenses were $128,000, and fixed expenses were $35,100. 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 575 units and total sales by $2,300? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income %
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Answer rating: 100% (QA)
Number of units sold 40000 Total sales 160000 variable cost 128... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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