Last month when Harrison Creations, Inc., sold 38,000 units, total sales were $303,000, total variable expenses were $251,490, and fixed expenses were $37,700. Required: 1. What is the companyâ€™s contribution margin (CM) ratio? 2. Estimate the change in the companyâ€™s net operating income if it were to increase its total sales by $1,800.
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