User Account

All Pages

Evaluate the company''s contribution margin

Assignment Help Financial Accounting
Reference no: EM1311469

Computing and Using the CM Ratio  

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.

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: EM1311469

Questions Cloud

Changes in variable costs fixed costs and selling price : Changes in Variable Costs, Fixed Costs and Selling Price, and Volume. The marketing manager argues that a $5,000 increase in the monthly advertising budget would increase monthly sales by $9,000. Should the advertising budget be increased?
Describing the three theories : Mention and describe the three theories for why the short-run aggregate-supply curve is upward sloping.
Determining the correlation coefficient and regression lines : Make a scatter plot, illustrate the regression lines. Determine the correlation coefficient between husband’s and wife’s education for couples in which wife is employed full time?
What is the apparent weight of a 94 kg astronaut : An insulated Thermos contains 210 cm3 of hot coffee at 88 °C. You put a 19.00 g ice cube at its melting point to cool the coffee. By how many degrees has the coffee cooled once the ice has melted and equilibrium is reached? Treat the coffee as though..
Evaluate the company''s contribution margin : Evaluate the company's contribution margin (CM) ratio and Estimate the change in the company's net operating income if it were to increase its total sales by $1,000.
Probabilities of a random experiment : A certain random experiment can result in one of four different possible outcomes, which we'll call A, B, C and D.
Describing potential gdp with diagrams : Consider economy that is above full-employment equilibrium (natural rate of output) because of an increase in AD. Prices of productive resources have'nt changed. With the help of graph
What is the scale reading while an elevator accelerates : A solid cylinder with mass and radius, rotating with angular speed about an axis throughout its center, is set on the horizontal surface for which the kinetic friction coefficient is.
Prepare a new contribution format income statement : Prepare a new contribution format income statement under each of the following conditions - the sales volume increases by 100 units.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Evaluate debit and credit card fees

How much of the total sales revenue is required to be paid with cash and how many customers transaction does the company imagine in January

  What consolidation entry could be needed for these bonds

What consolidation entry could be needed for these bonds on December 31, 2012?

  Determined with absorption costing

Determined with absorption costing and direct costing and When the high-low method of estimating a cost behavior pattern

  Make a partial amortization table

Prepare a partial amortization table showing the original balance of this note, and the allocation of the first two monthly payments between interest expense and the reduction in the note's unpaid balance.

  Determining the transfer price

Recommend a transfer price and describe your reasons for choosing that price and determining the transfer price.

  Check the requirements of aasb framework

Give a response to the shareholder on the basis of these requirements. Check the requirements of both AASB 138 and the AASB Framework in relation to accounting for brands;

  Enhance company''s financial performance

Show Which alternative would most likely enhance this company's financial performance, overall

  Cost flow assumptions

Cost flow assumptions - FIFO and LIFO using a periodic system. Mower Blowers coy started business on Jan 20, 2009. Products sold were snow blowers and lawn mowers. Each product sold for $350

  Determine a budget variance

Determine a budget variance and a volume variance and determine a budget variance and a volume variance for fixed manufacturing overhead costs for the year

  Evaluate generally accepted accounting principles

Evaluate generally accepted accounting principles (GAAP) and what bodies provide authoritative support for GAAP? and What elements comprise the FASB's conceptual framework?

  Make a segmented income statement

Prepare a segmented income statement in the contribution format for the company. Omit percentages; show dollar amounts.

  Expected revenues and expenses for the first year

Expected revenues and expenses for the first year of operations

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd