Last month when Holiday Creations, Inc., sold 35,000 units, total sales were $286,000, total variable expenses were $203,060, and fixed expenses were $36,300.
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 $1,000? (Do not round intermediate calculations.)
1. Contribution margin (CM) ratio = (Sales - Variable expenses) / Sales
Contribution margin (CM) ratio = ($286,000 - $203,060) / $286,000
Contribution margin (CM) ratio = 0.29 or 29%
2. Estimated change in net operating income = Change in total sales × CM ratio
Estimated change in net operating income = $1,000 × 29%
Estimated change in net operating income = $290
Last month when Holiday Creations, Inc., sold 35,000 units, total sales were $286,000, total variable expenses...
Last month when Holiday Creations, Inc., sold 35,000 units, total sales were $299,000, total variable expenses were $248,170, 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 $2,500? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income
Last month when Holiday Creations, Inc., sold 35,000 units, total sales were $308,000, total variable expenses were $221,760, and fixed expenses were $38,000. 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.) 1. Contribution margin ratio 2. Estimated change in net operating income
Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $295,000, total variable expenses were $250,750, and fixed expenses were $36,300. 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 $1,500? (Do not round Intermediate calculations.) 1. Contribution margin ratio 2 Estimated change in net operating income
Last month when Holiday Creations, Inc., sold 39,000 units, total sales were $293,000, total variable expenses were $210,960, and fixed expenses were $39,800. 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 $1,100? (Do not round intermediate calculations.) 1. Contribution margin ratio % 2. Estimated change in net operating income
Last month when Holiday Creations, Inc., sold 38,000 units, total sales were $313,000, total variable expenses were $256,660, and fixed expenses were $38,900. 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 $3,000? (Do not round intermediate calculations.)
Last month when Holiday Creations, Inc., sold 39,000 units, total sales were $292,000, total variable expenses were $219,000, and fixed expenses were $35,500. 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 $3,000? (Do not round intermediate calculations.)
Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $314,000, total variable expenses were $260,620, and fixed expenses were $37,600. 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 $2,000? (Do not round intermediate calculations.)
Last month when Holiday Creations, Inc., sold 45,000 units, total sales were $281,000, total variable expenses were $205,130, and fixed expenses were $36,800. 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 $2,200? (Do not round intermediate calculations.)
Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $282,000, total variable expenses were $203,040, and fixed expenses were $37,300. 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 $2,400? (Do not round intermediate calculations.)
Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $299,000, total variable expenses were $215,280, and fixed expenses were $35,300. Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $299,000, total variable expenses were $215,280, and fixed expenses were $35,300. 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 $2,600? (Do not round intermediate...