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Last month when Holiday Creations, Incorporated, sold 45,000 units, its sales, variable expenses, and fixed expenses were $180,000, $144,000, and $35,200, 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 % %

Last month when Holiday Creations, Incorporated, sold 45,000 units, its sales, variable expenses, and fixed expenses were $180,000, $144,000, and $35,200, 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 % %

FINANCIAL ACCOUNTING
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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Last month when Holiday Creations, Incorporated, sold 45,000 units, its sales, variable expenses, and fixed expenses were $180,000, $144,000, and $35,200, 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 % %
Transcribed Image Text:Last month when Holiday Creations, Incorporated, sold 45,000 units, its sales, variable expenses, and fixed expenses were $180,000, $144,000, and $35,200, 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 % %
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