$1.$ Contribution margin ratio $28\%$

$2.$ Estimated change in net operating income $$616$Exercise $2-4($Algo$)$ Computing and Using the CM Ratio $[$LO$2-3]$

Last month when Holiday Creations, Inc., sold $36,000$ units, total sales were $$300,000,$ total variable expenses were $$237,000,$ and

fixed expenses were $$38,200.$

Required:

What is the company's contribution margin $($CM$)$ ratio?

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.$)$