Question: Exercise 5-4 Computing and using the CM Ratio (LO5-3) Last month when Holiday Creations, Inc., sold 45,000 units, total sales were $287,000, total variable expenses

Exercise 5-4 Computing and using the CM Ratio (LO5-3) Last month when Holiday Creations, Inc., sold 45,000 units, total sales were $287,000, total variable expenses were $220,990, and fixed expenses were $39,900. 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 $2,600? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income

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