Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000. Required: 1.
Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000. Required: 1. What is the companys contribution margin (CM) ratio? 2. Estimate the change in the companys net operating income if it were to increase its total sales by $1,000.
Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000.
Required:
1.
What is the companys contribution margin (CM) ratio?
2.
Estimate the change in the companys net operating income if it were to increase its total sales by $1,000.
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
Cost-Benefit Analysis
Authors: E.J. Mishan, Euston Quah
6th Edition
1138492752, 978-1138492752
