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.)
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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.)
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- Last 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 43,000 units, total sales were $172,000, total variable expenses were $137,600, 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 600 units and total sales by $2,400? (Do not round intermediate calculations.) 1. Contribution margin ratio % 2. Estimated change in net operating incomeLast 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 %
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