Determining company-s contribution margin ratio


Q1) 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.

Questions:

1. Determine the company's contribution margin (CM) ratio?

2. Evaluate change in company's net operating income if it were to rise its total sales by $1,000.

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Accounting Basics: Determining company-s contribution margin ratio
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