Sales	120000	20
less variable expenses	72000	12
contribution margin	48000	8
less fixed expenses net income	30000
net income	18000

What is the companys CM ratio? If quarterly sales increase by $4,800 and there is no change in fixed expenses, by how much would you expect quarterly net operating income to increase? (Do not prepare an income statement; use the CM ratio to compute your answer.)

CM ratio % Increased net income