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2 parts Exercise 6-4 Computing and using the CM Ratio (L06-3) Last month when Holiday Creations, Inc., sold 36,000 units, total sales were $293,000, total
2 parts Exercise 6-4 Computing and using the CM Ratio (L06-3) Last month when Holiday Creations, Inc., sold 36,000 units, total sales were $293,000, total variable expenses were $210,960, and fixed expenses were $38,300 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 $2,800? (Do not round Intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [L06-4) (The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below; Selling price Variable expenses Contribution margin Per Unit $ 95 57 $ 38 Percent of Sales 100% 60 40% Fixed expenses are $79,000 per month and the company is selling 3,600 units per month Exercise 6-5 Part 1 Required: 10. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,400 and monthly sales increase by $17,100? 1-6. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,400 and monthly sales increase by $17,100? (Round any unit calculations up to the nearest whole unit.) Net operating income by Reel Reg 10 > Complete this question by entering your answers in the tabs below. Reg LA Reg 1B Should the advertising budget be increased? Oros ONO
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