What is the companys contribution margin cm ratio estimate, Accounting Basics

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What is the companys contribution margin cm ratio estimate

Problem

Last month when Holiday Creations, Inc., sold 41,000 units, total sales were $286,000, total variable expenses were $220,220, and fixed expenses were $36,900.

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 $1,900.

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Accounting Basics: What is the companys contribution margin cm ratio estimate

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