Last month when Holiday Creations, Incorporated, sold 41,000 units, its sales, variable expenses, and fixed expenses were $164,000, $136,120, and $38,600, respectively. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the company's variable expense ratio? Note: Do not round intermediate calculations. 1. Contribution margin ratio 2. Variable expense ratio 17 % %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Last month when Holiday Creations, Incorporated, sold 41,000 units, its sales, variable
expenses, and fixed expenses were $164,000, $136,120, and $38,600, respectively.
Required:
1. What is the company's contribution margin (CM) ratio?
2. What is the company's variable expense ratio?
Note: Do not round intermediate calculations.
1. Contribution margin ratio
2. Variable expense ratio
17 %
%
Transcribed Image Text:Last month when Holiday Creations, Incorporated, sold 41,000 units, its sales, variable expenses, and fixed expenses were $164,000, $136,120, and $38,600, respectively. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the company's variable expense ratio? Note: Do not round intermediate calculations. 1. Contribution margin ratio 2. Variable expense ratio 17 % %
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