Exercise 6-4 Computing and Using the CM Ratio [LO6-3] Last month when Holiday Creations, Inc.,...
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Accounting
Exercise 6-4 Computing and Using the CM Ratio [LO6-3]
Last month when Holiday Creations, Inc., sold 41,000 units, total sales were $301,000, total variable expenses were $252,840, and fixed expenses were $35,900.
Required:
1. What is the companys contribution margin (CM) ratio?
2. What is the estimated change in the companys net operating income if it can increase total sales by $2,900? (Do not round intermediate calculations.)
1
Contribution margin ratio
%
2
Estimated change in net operating income
%
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