Last month when Holiday Creations, Incorporated, sold 39,000 units, total sales were $156,000, total variable expenses were $112,320, and fixed expenses were $35,400.

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 sales volume by 400 units and total sales by $1,600? (Do not round intermediate calculations.)

Lin Corporation has a single product whose selling price is $130 per unit and whose variable expense is $65 per unit. The companys monthly fixed expense is $32,150.

Required:

1. Calculate the unit sales needed to attain a target profit of $2,300. (Do not round intermediate calculations.)

2. Calculate the dollar sales needed to attain a target profit of $8,900. (Round your intermediate calculations to the nearest whole number.)