Exercise 5-1 (Algo) Computing the CM Ratio and Variable Expense Ratio [LO5-1]
Last month when Holiday Creations, Incorporated, sold 44,000 units, its sales, variable expenses, and fixed expenses were $176,000,
$146,080, and $36,100, respectively.
Required:
1. What is the company's contribution margin (CM) ratio?
2. What is the company's variable expense ratio?
Note: Do not round intermediate calculations.
1. Contribution margin ratio
2. Variable expense ratio
%