Last month when Holiday Creations, Incorporated, sold 44,000 units, total sales were $176,000, total variable expenses were$144,320, and fixed expenses were $39,300.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 500 units and total sales by$2,000? (Do not round intermediate calculations.)X Answer is not complete.1. Contribution margin ratio2. Estimated change in net operating income18%

Net operating income is the amount of money earned by the entity after deducting the operating…

Answered: Last month when Holiday Creations,…

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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If a company, sold 37,000 units, total sales were $148,000, total variable expenses were $105,080, and fixed expenses were $38,900. What is the company's contribution margin (CM) ratio? What is the estimated change in the companys net operating income if it can increase sales volum by 525 units and total sales by $2,100. Contribution margin ratio ___________________% Estimated change in net operating income ___________________%
Last year, Flynn Company reported a profit of $70,000 when sales totaled $520,000 and the contribution margin ratio was 40%. If fixed expenses increase by $10,000 next year, what amount of sales will be necessary in order for the company to earn a profit of $80,000?
! Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Fixed expenses are $74,000 per month and the company is selling 4,400 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,800, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,000? 1-b. Should the advertising budget be increased? Req 1A Per Unit $ 70 49 $ 21 Complete this question by entering your answers in the tabs below. Req 1B Percent of Sales 100% 70 30% Net operating income How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,800, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,000? Note: Do not round intermediate calculations. by
Last month when Holiday Creations, Incorporated, sold 43,000 units, total sales were $172,000, total variable expenses were $137,600, and fixed expenses were $36,300. 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? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income %
Last month when Holiday Creations, Incorporated, sold 44,000 units, total sales were $176,000, total variable expenses were $147,840, and fixed expenses were $39,300. 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 375 units and total sales by $1,500? (Do not round intermediate calculations.)
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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The Sizemore Company recently sold 2,500 units for $100 each; reported total variable costs of $162,500 and a net income of $47,500. If the company's price per unit increased by $5 and its volume decreased by 250 units, what would be the company's net income?
Sarratt Corporation's contribution margin ratio is 70% and its fixed monthly expenses are $38,000. Assume that the company's sales for May are expected to be $97,000. Required: Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change. Net operating income
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Last month when Holiday Creations, Incorporated, sold 38,000 units, total sales were $152,000, total variable expenses were $127,680, and fixed expenses were $37,200. 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 500 units and total sales by $2,000? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income %

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