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Exercise 6-4 Computing and Using the CM Ratio [LO6-3] Last month when.pdf

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Exercise 6-4 Computing and Using the CM Ratio [LO6-3] Last month when Holiday Creations, Inc., sold 35,000 units, total sales were $301,000, total variable expenses were $222,740, and fixed expenses were $38,800. 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 $2,800 ? (Do not round intermediate calculations.).

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Exercise 6-4 Computing and Using the CM Ratio [LO6-3] Last month when Holiday Creations, Inc., sold 35,000 units, total sales were $301,000, total variable expenses were $222,740, and fixed expenses were $38,800. 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 $2,800 ? (Do not round intermediate calculations.)

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