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Estimate the change in the company net operating income

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Reference no: EM133036569

Question - 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 -

a. What is the company's contribution margin (CM) ratio?

b. Estimate the change in the company's net operating income if it were to increase its total sales by $1,000.

Reference no: EM133036569

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