Computing and using the cm ratio
last month when holiday creations, inc., sold 50,000 un...
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Computing and using the cm ratio
last month when holiday creations, inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000.
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 $1,000.
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