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Category > Accounting Posted 12 Jun 2017 My Price 4.00

Last month when Holiday Creations, Inc

Last month when Holiday Creations, Inc., sold 42,000 units, total sales were $312,000, total variable expenses were $249,600, and fixed expenses were $37,900. a) What is the company’s contribution margin (CM) ratio? b) Estimate the change in the company’s net operating income if it were to increase its total sales by $1,600.

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Alpha Geek
(8)
Status NEW Posted 12 Jun 2017 07:06 AM My Price 4.00

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file 1497252839-Answer.docx preview (84 words )
L-----------ast----------- mo-----------nth----------- wh-----------en -----------Hol-----------ida-----------y C-----------rea-----------tio-----------ns,----------- In-----------c.,----------- so-----------ld -----------42,-----------000----------- un-----------its-----------, t-----------ota-----------l s-----------ale-----------s w-----------ere----------- $3-----------12,-----------000-----------, t-----------ota-----------l v-----------ari-----------abl-----------e e-----------xpe-----------nse-----------s w-----------ere----------- $2-----------49,-----------600-----------, a-----------nd -----------fix-----------ed -----------exp-----------ens-----------es -----------wer-----------e $-----------37,-----------900-----------. ----------- a)----------- Wh-----------at -----------is -----------the----------- co-----------mpa-----------nyâ-----------€™s----------- co-----------ntr-----------ibu-----------tio-----------n m-----------arg-----------in -----------(CM-----------) r-----------ati-----------o? ----------- b-----------) E-----------sti-----------mat-----------e t-----------he -----------cha-----------nge----------- in----------- th-----------e c-----------omp-----------any-----------’-----------s n-----------et -----------ope-----------rat-----------ing----------- in-----------com-----------e i-----------f i-----------t w-----------ere----------- to----------- in-----------cre-----------ase----------- it-----------s t-----------ota-----------l s-----------ale-----------s b-----------y $-----------1,6-----------00.----------- A-----------nsw-----------er ----------- Sa-----------les----------- in----------- un-----------it -----------42,-----------000----------- To-----------tal----------- sa-----------les----------- $ -----------312-----------,00-----------0 V-----------ari-----------abl-----------e e-----------xpe-----------nse-----------s $----------- 24-----------9,6-----------00 -----------Fix-----------ed -----------exp-----------ens-----------es
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