Last month when Holiday Creations, Inc., sold 35,000 units, total sales were $300,000, total variable expenses were $234,000, and fixed expenses were $38,700.
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 $2,500?
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Last month when Holiday Creations, Inc., sold 35,000 units, total sales were $300,000, total variabl...
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