Last month when Holiday Creations, Incorporated, sold 35,000 units, total sales were $140,000, total variable expenseswere $113,400, and fixed expenses were $38,900.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 575 units andtotal sales by $2,300? (Do not round intermediate calculations.)1. Contribution margin ratio2. Estimated change in net operating income% Whirly Corporation's contribution format income statement for the most recent month is shown below:Total$ 267,300153,900Per Unit$ 33.0019.00$ 14.00Sales (8,100 units)Variable expensesContribution marginFixed expensesNet operating incomeRequired:(Consider each case independently):113,40054,400$ 59,0001. What would be the revised net operating income per month if the sales volume increases by 90 units?2. What would be the revised net operating income per month if the sales volume decreases by 90 units?3. What would be the revised net operating income per month if the sales volume is 7,100 units?1. Revised net operating income2. Revised net operating income3. Revised net operating income

The contribution margin displays how much income remains after deducting direct costs and expenses…

vere $113,400, and fixed expenses were $38,900. Cequired: What is the company's contribution margin (CM) ratio? . What is the estimated change in the company's net operating inco otal sales by $2,300? (Do not round intermediate calculations.)

vere $113,400, and fixed expenses were $38,900. Cequired: What is the company's contribution margin (CM) ratio? . What is the estimated change in the company's net operating inco otal sales by $2,300? (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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