Brief exercise 26-4 manson industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. a supplier offers to make 14,700 of the assembly part at $6 per unit. if the offer is accepted, manson will save all variable costs but no fixed costs. prepare an analysis showing the total cost saving, if any, manson will realize by buying the part. (enter negative amounts using either a negative sign preceding the number e. g. -45 or parentheses e. g. ( make buy net income increase (decrease) variable manufacturing costs $ $ $ fixed manufacturing costs purchase price total annual cost $ $ $ the decision should be to the part.

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