Last month when Holiday Creations, Incorporated, sold 37,000 units, total sales were $148,000, total variable expenses were $109,520, and fixed expenses were $38,500. 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 700 units and total sales by $2,800? (Do not round intermediate calculations.)

Last month when Holiday Creations, Incorporated, sold 37,000 units, total sales were $148,000, total variable expenses were $109,520, and fixed expenses were $38,500. 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 700 units and total sales by $2,800? (Do not round intermediate calculations.)

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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Subject: accounting