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Exercise 5 - 4 ( Algo ) Computing and Using the CM Ratio [ LO 5 - 3 ] Last month when Holiday Creations, Inc.,

Exercise 5-4(Algo) Computing and Using the CM Ratio [LO5-3]
Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $176,000, total variable expenses were $124,960, and
fixed expenses were $39,900.
Required:
What is the company's contribution margin (CM) ratio?
What is the estimated change in the company's net operating income if it can increase sales volume by 475 units? (Do not round
intermediate calculations.)
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