Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $310,000, total variable expenses were $226,300, and fixed expenses were $37,800. Required: 1.
Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $310,000, total variable expenses were $226,300, and fixed expenses were $37,800. Required:
1. What is the companys contribution margin (CM) ratio?
2. What is the estimated change in the companys net operating income if it can increase total sales by $2,900? (Do not round intermediate calculations.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started