Evaluate the company''s contribution margin

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Reference no: EM1311469

Computing and Using the CM Ratio

Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and total fixed expenses were $65,000.

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 $1,000.

Reference no: EM1311469

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