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Last month when Holiday Creations, Inc., sold 40,000 units, total sales were $288,000, total variable...

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Question

Accounting

Last month when Holiday Creations, Inc., sold 40,000 units, total sales were $288,000, total variable expenses were $204,480, and fixed expenses were $35,100.

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 $3,000? (Do not round intermediate calculations.)

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