Last month when Holiday Creations, Inc., sold 41,000 units, total sales were $318,000, total variable expenses were $228,960, and fixed expenses were $39,700. 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 $2,500?

1.	Contribution margin ratio		%
2.	Estimated change in net operating income