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Last month when Holiday Creations, Inc., sold 41,000 units, total sales were $286,000, total variable expenses were $211,640, and fixed expenses were $39,400. Required: 1.

Last month when Holiday Creations, Inc., sold 41,000 units, total sales were $286,000, total variable expenses were $211,640, and fixed expenses were $39,400.

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 $2,100?

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