Whirly Corporation’s contribution format income statement for the most recent month is shown below:

Total Per Unit
Sales (8,700 units) $ 287,100 $ 33.00
Variable expenses 165,300 19.00
Contribution margin 121,800 $ 14.00
Fixed expenses 55,600
Net operating income $ 66,200

Required:
(Consider each case independently):

1. What would be the revised net operating income per month if the sales volume increases by 40 units?
2. What would be the revised net operating income per month if the sales volume decreases by 40 units?
3. What would be the revised net operating income per month if the sales volume is 7,700 units?
Last month when Holiday Creations, Incorporated, sold 37,000 units, total sales were $148,000, total variable expenses were $115,440, and fixed expenses were $35,800.

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 sales volume by 500 units and total sales by $2,000? (Do not round intermediate calculations.)