Amanufacturing company sells its products directly to customers and operates 5 days a week, 52 weeks a year. the production department of this company can produce at the rate of 60 units per day. the setup cost for a production run is $ 125.00. the cost of holding is $ 4.00 per unit per year. the demand for the item is continuous and constant and is 3,900 units per year. (note: the demand occurs only when the company is operating, that is, 5 days a week for 52 weeks). find the optimum number of units to be produced in one batch.

Required: 1-a. the marketing manager argues that a $5,000 increase in the monthly advertising budget would increase monthly sales by $9,000. calculate the increase or decrease in net operating income. 1-b. should the advertising budget be increased ? yes no hintsreferencesebook & resources hint #1 check my work 8.value: 1.00 pointsrequired information 2-a. refer to the original data. management is considering using higher-quality components that would increase the variable expense by $2 per unit. the marketing manager believes that the higher-quality product would increase sales by 10% per month. calculate the change in total contribution margin. 2-b. should the higher-quality components be used? yes no