question 1. Last month, when Holiday Creations, Inc. sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and total fixed expenses were $65,000.

Questions-

1. What is the companys CM ratio?

The percentage of sales remained after the variable expenses are paid of is called as contribution margin percentage.

2. Estimate the change in the companys net income if it were to increase its total sales by $1,100.

question 2.

Mauro Products has a single product, a woven basket whose selling price is $54, and variable cost is $45 per unit. The companys monthly fixed expenses are $26,550.

questions-

1. Compute the companys break-even point in unit sales using the equation method.
2. Compute the companys break-even point in sales dollars using the equation method and the CM ratio.
3. Compute the companys break-even point in unit sales using the contribution margin method.
4. Compute the companys break-even point in sales dollars using the contribution margin method and the CM ratio.