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Last month when Holiday Creations, Incorporated, sold 44,000 units, .pdf

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Holiday Creations sold 44,000 units last month for $176,000 in total sales. Variable expenses were $132,000 and fixed expenses were $38,500. The document asks to calculate the company's contribution margin ratio and estimate the change in net operating income if sales increase by 625 units and $2,500.

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Last month when Holiday Creations, Incorporated, sold 44,000 units, total sales were $176,000, total variable expenses were $132,000, and fixed expenses were $38,500. Required: 1. What is the companys contribution margin (CM) ratio? 2. What is the estimated change in the companys net operating income if it can increase sales volume by 625 units and total sales by $2,500? (Do not round intermediate calculations.)

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