Question & Answer: Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses wer…..

Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000. What is the company’s contribution margin (CM) ratio? Estimate the change in the company’s net operating income if it were to increase its total sales by $1,000.