Contribution margin=Sales-Variable cost
=(299,000-248170)=$50830
Contribution margin ratio=Contribution margin/Sales
=50830/299,000
=17%
Change in net operating income=Increase in net operating income=Increase in sales*Contribution margin ratio
=2500*17%
=$425
Last month when Holiday Creations, Inc., sold 35,000 units, total sales were $299,000, total variable expenses...
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...
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 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.)
Last month when Holiday Creations, Inc., sold 39,000 units, total sales were $298,000, total variable expenses were $223,500, and fixed expenses were $35,400. 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? (Do not round intermediate calculations.) Contribution margin ratio Estimated change in net operating income
Last month when Holiday Creations, Inc., sold 40,000 units, total sales were $291,000, total variable expenses were $224,070, and fixed expenses were $39,000. 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 $1,400? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income
Last month when Holiday Creations, Inc., sold 45,000 units, total sales were $298,000, total variable expenses were $223,500, 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 $289,000, total variable expenses were $216,750, and fixed expenses were $38,400. 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.) 1. Contribution margin ratio Estimated change in net operating income
Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $297,000, total variable expenses were $213,840, and 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 $2,800? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income
Last month when Holiday Creations, Inc., sold 41,000 units, total sales were $313,000, total variable expenses were $222,230, and fixed expenses were $36,400. 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 $1.2002 (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 $303,000 total variable expenses were $245,430, and fixed expenses were $37,500. 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 $2,900? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income