Fixed expenses are $76,000 per month and the company is selling 2,500 units per month. Exercise 6-5 (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-qualit components that increase the variable expense by $4 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higherquality components that increase the variable expense by $4 per unit and increase unit sales by 20%. Last month when Holiday Creations, Incorporated, sold 40,000 units, total sales were $160,000, total variable expenses were $131,200, and fixed expenses were $38,000. 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 475 units and total sales by $1,900 ? (Do not round intermediate calculations.)