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

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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