(Answered) Exercise - computing and using the cm ratiolast month when

Accounting

Exercise - Computing and Using the CM Ratio

Last month when Holiday Creations, Inc., sold 36,000 units, total sales were $304,000, total variable expenses were $221,920, and fixed expenses were $36,100.

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 $1200.

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