Exercise 5-4 Computing and Using the CM Ratio [LO3] Last month when Harrison Creations, Inc., sold 42,000 units, total sales were $301,000, total variable expenses were $246,820, and fixed expenses were $35,500.

Required:

1. What is the companys contribution margin (CM) ratio? (Omit the "%" sign in your response.)

Contribution margin ratio %

2. Estimate the change in the companys net operating income if it were to increase its total sales by $1,400. (Omit the "$" sign in your response.)

Estimated change in net operating income $