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I was out sick and missed this portion of my class. Can anyone please answer the following but provide a breakdown so I can do

I was out sick and missed this portion of my class. Can anyone please answer the following but provide a breakdown so I can do the others?

Data for Herron Corporation are shown below:

Per Unit Percent of Sales
Selling price $ 60 100%
Variable expenses 39 65%
Contribution margin $ 21 35%

Fixed expenses are $72,000 per month and the company is selling 4,200 units per month.

a.The marketing manager believes that an $9,600 increase in the monthly advertising budget would increase monthly sales by $23,000. Calculate the increase or decrease in net operating income.

b.

Refer to the original data. Management is considering using higher-quality components that would increase the variable cost by $4 per unit. The marketing manager believes that the higher-quality product would increase sales by 25% per month. Calculate the change in total contribution margin.

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