Exercise 5-4 Computing and Using the CM Ratio (LO5-3] Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $308,000, total variable expenses were $237,160, and fixed expenses were $37,800. 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 $1,100? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5-4] [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Percent of. Per Unit Sales Selling price Variable expenses $120 1008 78 65 $ 42 Contribution margin 358 Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Exercise 5-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900 and monthly sales increase by $19,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 18