What is the companys contribution margin ratio

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Reference no: EM131247675

Last month when Holiday Creations, Inc., sold 42,000 units, total sales were $289,000, total variable expenses were $219,640, and fixed expenses were $39,900.

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: EM131247675

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