Question: Exercise 5-4 (Algo) Computing and Using the CM Ratio [LO5-3] Last month when Holiday Creations, Incorporated, sold 42,000 units, total sales were $168,000, total

Exercise 5-4 (Algo) Computing and Using the CM Ratio [LO5-3] Last month when Holiday Creations, Incorporated, sold 42,000 units, total sales were $168,000, total variable expenses were $132,720, and fixed expenses were $37,700. 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 sales volume by 375 units and total sales by $1,500? (Do not round intermediate calculations.) Answer is complete but not entirely correct. 1. Contribution margin ratio 21% 2. Estimated change in net operating income 1,500

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