Last month when Holiday Creations, Inc., sold 41,000 units, total sales were $302,000, total variable expenses were $256,700, andfixed 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 roundintermediate calculations.)1. Contribution margin ratio%2. Estimated change in net operating income

Contribution Margin Ratio is percentage difference between corporate revenues and variable costs.…

Answered: ixed expenses were $36,900. Required:…

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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ixed 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 intermediate calculations.)