Last month when Holiday Creations, Incorporated, sold 40,000 units, total sales were $160,000, total variable expenses were $123,200, and fixed expenses were $39,400. 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 325 units and total sales by $1,300? Note: Do not round intermediate calculations. 1. Contribution margin ratio 2. Estimated change in net operating income %

Last month when Holiday Creations, Incorporated, sold 40,000 units, total sales were $160,000, total variable expenses were $123,200, and fixed expenses were $39,400. 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 325 units and total sales by $1,300? Note: Do not round intermediate calculations. 1. Contribution margin ratio 2. Estimated change in net operating income %

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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