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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.
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 companys contribution margin (CM) ratio?
2. What is the estimated change in the companys net operating income if it can increase total sales by $2,400? (Do not round intermediate calculations.)
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