The marketing manager argues that a $9,500 increase in the monthly advertising budget would increase monthly sales by $22,500. Calculate the increase or decrease in net operating income.

Refer to the original data. Management is considering using higher-quality components that would increase the variable expense 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.

The following information applies to the questions displayed below Data for Hermann Corporation are shown below: Percent of Sales 00% 60% Per Unit S 55 Selling price Variable expenses Contribution margin $ 22 40% Fixed expenses are $71,000 per month and the company is selling 4100 units per month. value: 3.75 points Required 1-a. The marketing manager s that a $9,500 increase in the monthly advertising budget would increase monthly sales by $22,500. Calculate the increase or decrease in net operating income. 1-b. Should the advertising budget be increased? Yes O No Hints References eBook& Resources Hint #1 value 3.75 points 2-a. Refer to the original data. Management is considering using higher-quality components that would increase the variable expense 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. I contribution margin 2-b. Should the higher-quality components be used? Yes O No