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Svetlanka [38]
3 years ago
6

Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $308,000, total variable expenses were $215,600, an

d fixed expenses were $35,700. 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 $1,800?
Business
1 answer:
liq [111]3 years ago
3 0

Answer: 1) CM / Sales = CM Ratio

CM = 306,000 - 238,680 = 67,320

CM Ratio = 67,320 / 306,000 = 0.22

2) CM Ratio x 2,500 = 550

Explanation:

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