Exercise 6-4 (Algo) Computing and Using the CM Ratio [LO6-3] Last month when Holiday Creations, Incorporated,...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66560f8a3db82_10666560f8a36ff6.jpg)
Transcribed Image Text:
Exercise 6-4 (Algo) Computing and Using the CM Ratio [LO6-3] Last month when Holiday Creations, Incorporated, sold 38,000 units, total sales were $152,000, total variable expenses were $118,560, and fixed expenses were $35,800 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 sales volume by 500 units and total sales by $2,000? (Do not round intermediate calculations.) 1. Contribution margin ratio 2 Estimated change in net operating income % Exercise 6-4 (Algo) Computing and Using the CM Ratio [LO6-3] Last month when Holiday Creations, Incorporated, sold 38,000 units, total sales were $152,000, total variable expenses were $118,560, and fixed expenses were $35,800 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 sales volume by 500 units and total sales by $2,000? (Do not round intermediate calculations.) 1. Contribution margin ratio 2 Estimated change in net operating income %
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
What is the difference between an account and a ledger? Discuss.
-
For the DOS, use the three-level depression diagnosis and variable MS for marital status as defined in Section 4.2.2 to test for uniform association, assuming that both the depression diagnosis and...
-
Complete the following descriptions by filling in the blanks. 1. The controlling investor is called the , and the investee is called the. 2. A long-term investment classified as equity securities...
-
The Department of Energy and the U.S. Environmental Protection Agencys 2012 Fuel Economy Guide provides fuel efficiency data for 2012 model year cars and trucks (Department of Energy website, April...
-
A company has computed that their asset turnover is 3. Which of the following statements is the best interpretation of these results? Group of answer choices For every $3 invested in assets, $1 in...
-
Use Solver to determine the weights for a four-period weighted moving average on the data set that minimizes the MSE. a. What are the optimal values for the weights? b. Prepare a line graph comparing...
-
What does B.S degree in Biology means at Empire State. For this purpose, you will readthe Empire State Student Planning Guide and the Empire State Undergraduate Catalog. In these sources, pay close...
-
Pacifico Company, a U.S.-based importer of beer and wine, purchased 1,200 cases of Oktoberfest-style beer from a German supplier for 264,000 euros. Relevant U.S. dollar exchange rates for the euro...
-
Finding Confidence Intervals. In Exercises 9-16, assume that each sample is a simple random sample obtained from a population with a normal distribution. Body Temperature Data Set 5 "Body...
-
19 Part 2 of 2 1.25 points Skipped Required information Problem 6-4A & 6-5A (Algo) [The following information applies to the questions displayed below.] Gerald Utsey earned $48,400 in 2021 for a...
-
Describe equilibrium constants with words and equations. is the ratio of the concentrations of products to the concentration of reactants present in a reaction mixture when chemical equilibrium is...
-
Pronghorn Inc. acquired 20% of the outstanding common shares of Gregson Inc. on December 31, 2019. The purchase price was $1,133,000 for 51,500 shares, and is equal to 20% of Gregson's carrying...
-
ROUND OFF YOUR SOLUTIONS AND ANSWERS IN TWO (2) DECIMAL PLACES. DO41 2. A man is planning to purchase an air-conditioning unit for his room that is scheduled to operate 12 hours a day. He has two...
-
Legislation can have only a limited effect in achieving equality, and does not change attitudes, beliefs and cultures and structures. Organisations and their cultures, processes and structures are...
-
It is sometimes argued that the UK should restructure discrimiunation law so that a single Equality Act offers the same protection to people who suffer from discrimination at work on all the...
-
I:5-10 Andy owns an appliance store where he has merchandise such as refrigerators for sale. Roger, a bachelor, owns a refrigerator, which he uses in his apartment for personal use. For which...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App