Exercise $2-4($Algo$)$ Computing and Using the CM Ratio $[$LO$2-3]$

Last month when Holiday Creations, Inc., sold $45,000$ units, total sales were $$290,000,$ total variable expenses were $$205,900,$ and fixed expenses were $$35,500.$

Required:

$1.$ What is the company$$s contribution margin $($CM$)$ ratio?

$2.$ What is the estimated change in the company$$s net operating income if it can increase total sales by $$1,700?($Do not round intermediate calculations.$)$