Amachine that cost $80,000 is expected to have a useful life of 10 years. its salvage value at the end of the period is estimated to be zero. the machine is expected to save the company $16,000 a year before taxes and depreciation. depreciation is based on the straight line method. the tax rate is 40%.

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