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Last month when Holiday Creations, Incorporated, sold 40,000 units, its sales, variable expenses, and fixed expenses were $160,000. $129,600, and $38,000, respectively. Required: 1. What
Last month when Holiday Creations, Incorporated, sold 40,000 units, its sales, variable expenses, and fixed expenses were $160,000. $129,600, and $38,000, respectively. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the company's variable expense ratio? Note: Do not round intermediate calculations. Whirly Corporation's contribution format income statement for the most recent month is shown below. Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 7,900 units? Data for Hermann Corporation are shown below: Fixed expenses are $75,000 per month and the company is selling 4,000 units per month equired: a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,900, the ionthly sales volume increases by 100 units, and the total monthly sales increase by $7,500 ? b. Should the advertising budget be increased? Data for Hermann Corporation are shown below: Fixed expenses are $75,000 per month and the company is selling 4,000 units per month to. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality omponents that increase the variable expense by $4 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used
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