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What is the companys contribution margin ratio estimate the

Problem

Last month when Holiday Creations, Inc., sold 35,000 units, total sales were $287,000, total variable expenses were $235, 340, and fixed expenses were $38,000.

What is the company's contribution margin (CM) ratio?

Estimate the change in the company's net operating income if it were to increase its total sales by $1, 700.

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