Problem

Computing and Using the CM RatioLast month when Harrison Creations. Inc. sold 40.000 units...

Computing and Using the CM Ratio

Last month when Harrison Creations. Inc. sold 40.000 units. total were $300,000.total variable expenses $240,00 and fixed expenses were $45,000.

Required:

1 What is the company's contribution margin (CM) ratio?

2 Estimate the change in the company's net operating income if it were to increase its total sales by $1,500.

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Solutions For Problems in Chapter 5