General accounting Blake wood Industries sold 55,000 units last month. The company'sfinancial results for the month were: Total Sales: $440,000 TotalVariable Expenses: $352,000 Fixed Expenses: $62,000Required:1. What is the company's contribution margin (CM) ratio?2. What is the estimated change in net operating income if total salesincrease by $4,000?

Question 1: Contribution Margin Ratio• Step 1: Calculate the Total Contribution Margin• Step 2:…

Answered: Blake wood Industries sold 55,000 units…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 5EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...

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Last month when Holiday Creations, Inc., sold 41,000 units, total sales were $306,000, total variable expenses were $217,260, and fixed expenses were $39,300. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase total sales by $3,000?
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Last month when Holiday Creations, Inc., sold 41,000 units, total sales were $302,000, total variable expenses were $256,700, and fixed expenses were $36,900. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase total sales by $2,500? (Do nòt round intermediate calculations.) 1. Contribution margin ratio % 2. Estimated change in net operating income
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