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EXERCISE 5-4 Computing and using the CM Ratio (L03] Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total vari- able

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EXERCISE 5-4 Computing and using the CM Ratio (L03] Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total vari- able expenses were $120,000, and 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

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