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Last month when Holiday Creations, Inc., sold 40,000 units, total sales were $160,000, total variable expenses were $118,400, and fixed expenses were $36,300. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 750 units and total sales by $3,000? (Do not round intermediate calculations.) % 1. Contribution margin ratio 2 Estimated change in net operating income Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 70 49 $ 21 Percent of Sales 100% 70 30% Fixed expenses are $74,000 per month and the company is selling 4,400 units per month Exercise 5-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,800, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 70 49 $ 21 Percent of Sales 100% 70 30% Fixed expenses are $74,000 per month and the company is selling 4,400 units per month. Exercise 5-5 (Algo) Part 2 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher quality components that increase the variable expense by $4 per unit and increase unit sales by 25%. 2.b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Reg 2A Req 2B