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Last month when Holiday Creations, Inc., sold 39,000 units, total sales were $307,000, total variable expenses were $224,110, and fixed expenses were $38,600. Required: 1.

Last month when Holiday Creations, Inc., sold 39,000 units, total sales were $307,000, total variable expenses were $224,110, and fixed expenses were $38,600.

Required:

1. What is the companys contribution margin (CM) ratio?

2. Estimate the change in the companys net operating income if it were to increase its total sales by $1,200.

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