Operating results for Division A of Babalou Company during 2018 are as follows Sales Cost of goods sold Gross profit Direct expenses Common expenses Total expenses Net income $400,000 248,000 $152,000 $27,000 45,000 $72,000 $80,000 Two questions for your team to answer: Scenario 1 If Division A would maintain the same quantity of product sold while raising selling prices by 5% and making additional advertising expenditures of $30,000, what would be the effect on the Division's net income? (Ignore income taxes in your calculations.) Scenario 2 If Division A would maintain the same quantity of product sold while raising selling prices by 10%, increasing direct labor costs by $20,000 and implementing a new marketing campaign at a cost of $10,000, what would be the effect on the Division's net income? (Ignore income taxes in your calculations.)