Question: 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

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 expenses were $39,800. 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 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 expenses were $39,800. 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 $1,200 ? (Do not round intermediate calculations.) Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Fixed expenses are $83,000 per month and the company is selling 2,500 units per month. Exercise 6-5 Part 1 Required: -a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,800 and nonthly sales increase by $17,250 ? I-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,800 and monthly sales increase by $17,250 ? (Round any unit calculations up to the nearest whole unit.) Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Fixed expenses are $83,000 per month and the company is selling 2,500 units per month. Exercise 6-5 Part 2 s-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality :omponents that increase the variable expense by $5 per unit and increase unit sales by 15%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higherquality components that increase the variable expense by $5 per unit and increase unit sales by 15%

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