Homework Saved Exercise 6-4 Computing and using the CM Ratio (LO6-3) Last month when Holiday Creations, Inc., sold 45,000 units, total sales were $287,000, total variable expenses were $218,120, and fixed expenses were $35,200. 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 $1,2007 (Do not round Intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L06-4) [The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 95 57 $ 38 Percent of Sales 1004 60 400 Fixed expenses are $79,000 per month and the company is selling 3,600 units per month Exercise 6-5 Part 2 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher quality components that increase the variable expense by $3 per unit and increase unit sales by 10%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Red 2A Reg 26 Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $3 per unit and increase unit sales by 10% Net operating income by REA Req 28 >