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Estimate the change in the company net operating income

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Reference no: EM131816008

Question - Last month when Harrison Creations, Inc., sold 40,000 units, total sales were $300,000, total variable expenses were $240,000, 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.

Reference no: EM131816008

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