ANSWER: $4000

ANSWER: INCREASE, $150

give the step by step answer for this two questions only

A company is evaluating the feasibility of starting a new business with a single product. The owner planned to operate the business for 28 days per month and open daily for 10 operating hours. Product - Milk Tea (MT) priced at $5.50 / cup Variable costs: Tea leaves/unit Sugar \& milk/unit Water/unit Fixed Costs/month $0.75 $0.10 $0.05 $7,500 The BEQ per month for MT is 2500 5.50.750.100.057500 1630 =1630 1400 The BEQ per day and per hour respectively are 82/ day and 8/ hour respectively 163028 Hours??? 58/ day and 6/ hour respectively =58 days 163012 89/ day and 9/ hour respectively =135.8 If the 1 month expected unit sales is 2,500 units per month, the expected profit for the first month will be $11500 $13750 $4000 $7500 Option 1 to increase monthly income: One option (option 1) to increase monthly income is to increase its advertising spending by $1,000 per month. This option will increase monthly sales units by 10%. %. If the company went ahead with the additional advertising, monthly income would by increase, $150 decrease, $150 decrease, $1000 increase, $1,000