Hello,

I'm confused on this. Per Unit Percentage of Sale

Selling price	$	115		100%
Variable expenses		69		60%
Contribution margin	$	46		40%

Fixed expenses are $83,000 per month and the company is selling 2,500 units per month.

Required:
1-a.	The marketing manager believes that an $8,800 increase in the monthly advertising budget would increase monthly sales by $19,000. Calculate the increase or decrease in net operating income.

Net operating income____by _____ ?

Refer to the original data. Management is considering using higher-quality components that would increase the variable cost by $5 per unit. The marketing manager believes that the higher-quality product would increase sales by 15% per month. Calculate the change intotal contribution margin.
Total Contribution Margin______by _______?