Last month when Holiday Creations, Incorporated, sold 50,000 units, total sales were $200,000, total variable expenses...

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Last month when Holiday Creations, Incorporated, sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000. 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 sales volume by 250 units and total sales by $1,000? 1. Contribution margin ratio 2. Estimated change in net operating income % Last month when Holiday Creations, Incorporated, sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000. 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 sales volume by 250 units and total sales by $1,000? 1. Contribution margin ratio 2. Estimated change in net operating income %

Answer rating: 100% (QA)

1 Contribution Margin Ratio The contribution margin ratio CM ratio is a profitability metric that me... View the full answer