Last month when Holiday Creations, Inc., sold 38,000 units, total sales were $306,000, total variable expenses were $220,320, and fixed expenses were $36,800. Required: 1. What is the companys contribution margin (CM) ratio? 2. What is the estimated change in the companys net operating income if it can increase total sales by $1,900? (Do not round intermediate calculations.

Exercise 5-4 Computing and Using the CM Ratio (LO5-3] Last month when Holiday Creations, Inc., sold 38,000 units, total sales were $306,000, total variable expenses were $220,320, and fixed expenses were $36,800. 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 total sales by $1,900? (Do not round intermediate calculations.) % 1. Contribution margin ratio 2. Estimated change in net operating income