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Exercise 6-1 (Algo) Computing the CM Ratio and Variable ast month when Holiday Creations, Incorporated, sold 41,000 units, its sales, variable expenses, and fixed expenses were $164,000, 127,920, and $35,700, respectively. Required: What is the company's contribution margin (CM) ratio? What is the company's variable expense ratio? Note: Do not round intermediate calculations. 1. Contribution margin ratio 2. Variable expense ratio % %

Exercise 6-1 (Algo) Computing the CM Ratio and Variable ast month when Holiday Creations, Incorporated, sold 41,000 units, its sales, variable expenses, and fixed expenses were $164,000, 127,920, and $35,700, respectively. Required: What is the company's contribution margin (CM) ratio? What is the company's variable expense ratio? Note: Do not round intermediate calculations. 1. Contribution margin ratio 2. Variable expense ratio % %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 6-1 (Algo) Computing the CM Ratio and Variable ast month when Holiday Creations, Incorporated, sold 41,000 units, its sales, variable expenses, and fixed expenses were $164,000, 127,920, and $35,700, respectively. Required: What is the company's contribution margin (CM) ratio? What is the company's variable expense ratio? Note: Do not round intermediate calculations. 1. Contribution margin ratio 2. Variable expense ratio % %
Transcribed Image Text:Exercise 6-1 (Algo) Computing the CM Ratio and Variable ast month when Holiday Creations, Incorporated, sold 41,000 units, its sales, variable expenses, and fixed expenses were $164,000, 127,920, and $35,700, respectively. Required: What is the company's contribution margin (CM) ratio? What is the company's variable expense ratio? Note: Do not round intermediate calculations. 1. Contribution margin ratio 2. Variable expense ratio % %
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