1) Contribution Margin = Sales - Variable Expenses
= $289,000 - $216,750
= $72,250
Contribution margin (CM) ratio = Contribution Margin / Sales
= $72,250 / $289,000
= 25%
2) Estimated change in net operating income = Change in total sales * CM Ratio
Estimated change in net operating income = $2,000 * 25%
Estimated change in net operating income = $500
Last month when Holiday Creations, Inc., sold 38,000 units, total sales were $289,000, total variable expenses...
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 41,000 units, total sales were $319,000, total variable expenses were $252,010, 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 $3,000? (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 $307,000, total variable expenses were $254.810, and fixed expenses were $38,600. 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.) % 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 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 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 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 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