The European Electronics Company has 3 divisions. The following budgeted data is available.

	German	Italian	Sweden
Sales	2,500 units	2,500 units	2,500 units
Selling price	80 per unit	85 per unit	90 per unit
Variable expense	35 per unit	40 per unit	38 per unit
Fixed expense	37,500	40,000	50,000

Italian Division:

1.If the unit contribution margin is increased by 10%, the total fixed expense is decreased by 20%, and all other data remain as in the budget, net operating income will be:

2. German Division: If the unit contribution margin is increased by 10%, the total fixed expense is decreased by 20%, and all other data remain as in the budget, net operating income will be: