Get correct solution for this general accounting question Creations Sports Equipment sold 36,000 units last month. Thecompany's financial results for the month were: Total Sales: $324,000Total Variable Expenses: $259,200 Fixed Expenses: $48,000A. What is the company's contribution margin (CM) ratio?B. What is the estimated change in net operating income if total salesincrease by $3,500?

Step 1: Define Contribution Margin RatioThe Contribution Margin (CM) Ratio is the percentage of…

Answered: Creations Sports Equipment sold 36,000…

Principles of Accounting Volume 2

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ISBN:9781947172609

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Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month...

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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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In March, James Electronics had sales of $2,550,000 (25,500 units), total variable expenses of $1,275,000, and total fixed expenses of $825,000. Required: 1. What is the company's CM ratio? CM ratio % A 2. Using the CM ratio, calculate the break-even level of sales in dollars. Break-even level of sales in dollor 3. What is the break-even level of sales in units? Break-even level of sales in units units
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Last month when Holiday Creations, Incorporated, sold 37,000 units, total sales were $148,000, total variable expenses were $115,440, and fixed expenses were $36,500. 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 sales volume by 675 units and total sales by $2,700? Note: Do not round intermediate calculations. 1. Contribution margin ratio 2. Estimated change in net operating income %
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