What is the companys contribution margin ratio

Assignment Help Financial Accounting

Reference no: EM131258127

Last month when Holiday Creations, Inc., sold 42,000 units, total sales were $306,000, total variable expenses were $260,100, and fixed expenses were $39,300.

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 $1,800.

Reference no: EM131258127

Questions Cloud

Differences in general partnership and limited partnership : Identify those activities in which a limited partner may engage without forfeiting limited liability. Create a table of differences between a general partnership and a limited partnership.

Break-even point in unit sales using the formula method : Mauro Products distributes a single product, a woven basket whose selling price is $18 and whose variable expense is $15.66 per unit. The company’s monthly fixed expense is $6,786. Solve for the company’s break-even point in unit sales using the equa..

Satisfactory statement of the accounting equation : Which of the following is NOT a satisfactory statement of the accounting equation? Assets = Liabilities + Owners' Equity Assets - Owners' Equity = Liabilities Assets = Liabilities - Owners' Equity Owners' Equity = Assets - Liabilities

Compute the depreciation schedule for this asset : A depreciable asset costs $10,000 and has an estimated salvage value of $1600 at the end of its 6-year depreciable life. Compute the depreciation schedule for this asset by both SOYD depreciation and DDB depreciation.

What is the companys contribution margin ratio : Last month when Holiday Creations, Inc., sold 42,000 units, total sales were $306,000, total variable expenses were $260,100, and fixed expenses were $39,300. What is the company’s contribution margin (CM) ratio?

Calculate the company break-even point in unit sales : Jaffre Enterprises distributes a single product whose selling price is $16.00 and whose variable expense is $10.80 per unit. The company’s fixed expense is $17,160 per month. Calculate the company’s break-even point in unit sales.

Treat guaranteed payments they receive from a partnership : Which of the following is true regarding how partners treat guaranteed payments they receive from a partnership?

How is fedexs location a competitive advantage : How is FedEx's location a competitive advantage? Discuss ? Why do so many U.S. firms build facilities in other countries? Why do so many foreign companies build facilities in the U.S.? What is clustering?

Modify given program to automatically repeat process x time : Modify the program to automatically repeat the process X times, where X is specified by user. Include meaning prompts, messages, and additional comments.

User Account

All Pages