Katsu, Inc. has a small car division that operates as a profit center. Below is a partially completed responsibility report for the first quarter. Responsibility Report Actual Flexible Budget Flexible Budget Variance ​U/F Percentage Variance ​U/F Sales Revenue ​$ ​$ Variable Expenses Contribution Margin Traceable Fixed Expenses Division Margin ​$ ​$ Compute the percentage variance for the flexible budget variance for sales revenue. ​(Round your answer to two decimal​ places.)

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