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Last month when Holiday shane, Inc., sold 42,000 units, total sales were $400,000, total variable expenses were $244,000, and fixed expenses were $39,700. 20 questions left-Renews M Required: Enter question 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.)

Last month when Holiday shane, Inc., sold 42,000 units, total sales were $400,000, total variable expenses were $244,000, and fixed expenses were $39,700. 20 questions left-Renews M Required: Enter question 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.)

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are...
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Last month when Holiday shane, Inc., sold 42,000 units, total sales were $400,000, total variable expenses were $244,000, and fixed expenses were $39,700.

20 questions left-Renews M

Required:

Enter question

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.)

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