What is the company contribution margin

Assignment Help Accounting Basics

Reference no: EM13133473

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? (Omit the "%" sign in your response.)

Contribution margin ratio %

2. Estimate the change in the company's net operating income if it were to increase its total sales by $1,500. (Omit the "tiny_mce_markerquot; sign in your response.)

Estimated change in net operating income $

Reference no: EM13133473

Questions Cloud

Explain to wendy at least key controls she must establish : Explain to Wendy at least 4 key controls she must establish to protect herself against fraud. You should state specific internal control principles and relate your answer to her hair salon business.

Unconsolidated requirement under gaap : AVPR Company sets up a qualifying SPE to sell their accounts receivable (A/R) to the SPE. The SPE meets the unconsolidated requirement under GAAP. The most likely outcome of using the SPE by AVPR will be to:

What journal entries should be recorded by barrell company : Ignoring income taxes, what should be the expenses incurred by Barrell from this lease for the year ended December 31, 2008? What journal entries should be recorded by Barrell Company on January 1, 2008?

Complete a time-sensitive project : Rigorously analyze the issues you have identified. Base your arguments on data in the case. Demonstrate your critical thinking ability, creativity, and insight, as well as appropriate use of the tools provided in the text or in previous courses.

What is the company contribution margin : 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.

How would the store account for a purchase using discount : The coupons expire in one year. The store normally recognizes a gross profit margin of 40% of the selling price on video games. How would the store account for a purchase using the discount coupon?

Full year of depreciation expense : Captain Inc. purchases a depreciable asset for $100,000. The life of the asset is 10 years and it has an estimated salvage value of $10,000. Captain Inc. takes a full year of depreciation expense in the year the asset is acquired. Which of the fol..

What major disadvantage of this method : Delmar Corporation is considering the use of residual income as a measure of the performance of its divisions. What major disadvantage of this method should the company consider before deciding to institute it?

What is expected number of contracts that company will win : What is the expected number of contracts that it will win? What is the expected profit for each contract? What is the company's expected total profit on these three bids?

User Account

All Pages