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Selling price Variable expenses Contribution margin Per Unit $ 125 80 $ 45 Percent of Sales 1009 64 36% Fixed expenses are $85,000 per month

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Selling price Variable expenses Contribution margin Per Unit $ 125 80 $ 45 Percent of Sales 1009 64 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,500? 1-6. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. sces Reg 1A Reg 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,500? (Do not round intermediate calculations.) by Net operating incomo Selling price Variable expenses Contribution margin Per Unit $125 80 $ 45 Percent of Sales 100% 64 361 Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. Not operating income by Reg 28

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