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oksian1 [2.3K]
3 years ago
11

Last month when Holiday Creations, Inc., sold 41,000 units, total sales were $282,000, total variable expenses were $214,320, an

d 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 $1,700? (Do not round intermediate calculations.)
Business
1 answer:
s344n2d4d5 [400]3 years ago
6 0

Answer:

1. Company’s contribution margin (CM) ratio = 24%

2. Estimated change in the company’s net operating income = $408

Explanation:

1. What is the company’s contribution margin (CM) ratio?

Contribution margin (CM) =  Total sales - Total variable expenses = $282,000 - $214,320 = $67,680

Contribution margin (CM) ratio = Contribution margin / Total sales = $67,680 / $282,000 = 0.24, or 24%

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.)

Estimated change in the company’s net operating income =  Increase total in sales * Contribution margin (CM) ratio = $1.700 * 24% = $408

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Answer:

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2 years ago
Ramirez Corporation is subject to income tax only in State A. Ramirez generated the following income and deductions. Federal tax
Alborosie

Answer:

a. $495,000

Explanation:

Data provided

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3 years ago
Suppose Nippon Technology had the following results related to cash flows for 2020: Net Income of $8,400,000 Adjustments from Op
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Answer:

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Explanation:

                Statement of Cash Flows (Indirect Method)

Particulars                                                                           Amount

Net income                                                                      $8,400,000

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3 years ago
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Human capital increase throughout a career because related jobs develop skills for a specific field of work. Humans can develop skills and gain knowledge through the field of work and improve these skills, if they have the passion to develop it.

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3 years ago
An animal shelter spends $2.00 per day to care for each cat and $6.50 per day to care for each dog. Isaiah noticed that the shel
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Answer:

There were 9 cats at the shelter on Wednesday.

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According to given condition

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C = 9

4 0
3 years ago
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