Question: need help with the following , thank you !! Exercise 5-4 Computing and Using the CM Ratio (LO5-3] Last month when Holiday Creations, Inc., sold

need help with the following , thank you !!

Exercise 5-4 Computing and Using the CM Ratio (LO5-3] Last month when Holiday Creations, Inc., sold 40.000 units, total sales were $319,000, total variable expenses were $271150, and fixed expenses were $40,000 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 $1,500? (Do not round intermediate calculations.) 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!

BRIEF EXERCISE 8-2 Computing and Using the CM Ratio [LO1-CC2,3] Last year , when Beaty Inc. sold 40,000 units , total sales were $ 200,000 , variable expenses were 70 % of sales revenue , and total...

Need help trying to solve this problem Exercise 5-4 Computing and Using the CM Ratio [LO5-3] Last month when Holiday Creations, Inc., .sold 44,000 units, total sales were $316,000, total variable...

need help with calculating the following practice problems . keep getting incorrect answers, thank you very much!!! Exercise 5-1 The Effect of Changes in Activity on Net Operating Income (LO5-1]...

Last month when Holiday Creations, Inc, sold 40,000 units, total sales were $295,000, total variable expenses were $224,200, and fixed expenses were $36,300. Exercise 5-4 Computing and using the CM...

EXERCISE 5-4 Computing and Using the CM Ratio LO5-3 Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses...

Last month when Holiday Creations, Inc., sold 38,000 units, total sales were $306,000, total variable expenses were $220,320, and fixed expenses were $36,800. Required: 1. What is the companys...

Exercise 5-1 The Effect of Changes in Activity on Net Operating Income (LO5-1] Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,100 units)...

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,...

Exercise 5-4 Computing and Using the CM Ratio (LO5-3] Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $308,000, total variable expenses were $237,160, and fixed expenses...

1.Lower, Lower 2.Higher, lower 3.Higher, Higher 4.Lower, Higher 5.Its impossible to predict 82. Suppose that Chicken Express, Inc. has a ROA of 7% and pays a 6% coupon on its debt. Chicken Express...

They will sell a range of chips from that factory, and they need to decide how much capacity to dedicate to each chip. Imagine that they will sell two chips. Phoenix is a completely new architecture...

15. A doctors office staff studied the waiting times for patients who arrive at the office with a request for emergency service. The following data with waiting times in minutes were collected over a...

Scenario: A Multi-national Corporation called The Globe has created a subsidiary called Thirst in an under-developed country called non-potable waters. This hosting country suffers from a severe...

There are lower levels of tertiary education in technical and scientific subjects than in other (developing) countries and this is likely to affect the skills pool.

Private sector organizations in South Africa spend only an estimated 2 per cent of payroll per year on education and training, compared with 68 per cent in the leading industrial nations (Horwitz et...

Government pressure has increased for the upward mobility of black managers, particularly in the public and parastatal (publicly owned utilities) sectors.