Last month when Holiday Creations, Incorporated, sold 37,000 units, total sales were $148,000, total variable expenses were $115,440, and fixed expenses were $36,500. 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 675 units and total sales by $2,700? Note: Do not round intermediate calculations. 1. Contribution margin ratio 2. Estimated change in net operating income %
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- Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?Last month when Holiday Creations, Inc., sold 41,000 units, total sales were $302,000, total variable expenses were $256,700, and fixed expenses were $36,900. 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 total sales by $2,500? (Do nòt round intermediate calculations.) 1. Contribution margin ratio % 2. Estimated change in net operating incomeLast month when Holiday Creations, Inc., sold 45,000 units, total sales were $289,000, total variable expenses were $236,980, and fixed expenses were $35,400. 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 total sales by $1,700? (Do not round intermediate calculations.) 1. Contribution margin ratio % 2. Estimated change in net operating income
- Last month when Holiday Creations, Incorporated, sold 35,000 units, total sales were $140,000, total variable expenses were $109,200, and fixed expenses were $38,600. 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 300 units and total sales by $1,200? Note: Do not round intermediate calculations. Answer is complete but not entirely correct. 1. Contribution margin ratio 2. Estimated change in net operating income 22 % $ 347 XLast month when Holiday Creations, Incorporated, sold 36,000 units, total sales were $144,000, totai variable expenses were $109,440, and fixed expenses were $38,500. 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 450 units and total sales by $1,800? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating incomeLast month when Holiday Creations, Incorporated, sold 38,000 units, total sales were $152,000, total variable expenses were $112,480, 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 500 units and total sales by $2,000? (Do not round intermediate calculations.)
- 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 ratio 2. Estimated change in net operating income 18 %Last month when Holiday Creations, Incorporated, sold 44,000 units, total sales were $176,000, total variable expenses were $128,480, 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 525 units and total sales by $2,100? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income %Last month when Holiday Creations, Inc., sold 36,000 units, total sales were $144,000, total variable expenses were $116,640, and fixed expenses were $38,000. 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 300 units and total sales by $1,200? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income
- Subject - Acounting Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses were $137,760, and fixed expenses were $37,400. 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 450 units and total sales by $1,800? (Do not round intermediate calculations.)tes Last month when Holiday Creations, Incorporated, sold 40,000 units, total sales were $160,000, total variable expenses were $116,800, and fixed expenses were $36,500. 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 250 units and total sales by $1,000? Note: Do not round intermediate calculations. 1. Contribution margin ratio 2. Estimated change in net operating income %A company sells one product and its contribution margin ratio is 20%. The company provides the following data regarding their operation: Current sales revenue Expected sales revenue next year Expected increase in net operating income next year $2,760,000 $2,870,400 20% Assuming that there is no change in total fixed expenses, what is the net operating income for the current year? Answer: $(Click to select)