Question 1: Dubai Company has reported the following budget data: Sales150,000 units Selling price .................................................... $25 per unit Variable expense............................................$15 per unit Fixed manufacturing expenses...........................$800,000 Fixed selling and admin. expenses....................$700,000 An advertising agency claims that an advertising campaign would enable the company to increase its sales by 20%. What is the maximum amount that the company can pay for advertising and obtain a net operating income of $200,000? Explain your answer. 91:151an Sharjah Company manufactures and sells a single product with a positive contribution margin. If the selling price and the variable expense per unit both increase by 5%, and xed expenses do not change, what is the effect on the contribution margin per unit and the contribution margin ratio? Explain your answer by providing a numerical example