Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $282,000, total variable expenses were
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Question:
Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $282,000, total variable expenses were $203,040, and fixed expenses were $37,300.
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 $2,400? (Do not round intermediate calculations.)
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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