Question: Exercise 5-4 Computing and Using the CM Ratio [LO5-3] Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total varlable expenses

Exercise 5-4 Computing and Using the CM Ratio [LO5-3] Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total varlable expenses were $120,000, and fixed expenses were $65,000 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 $1,000

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