Last month when Holiday Creations, Inc., sold 40,000 units, total sales were $290,000, total variable expenses were $211,700, and fixed expenses were $37,800.

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 $1,100?(Do not round intermediate calculations.)

1 - Contribution Margin Ratio

2- Estimated change in net operating income