Holo Company reported the following financial numbers for one of its divisions for the year; average total assets of $5,990,000; sales of $5,565,000; cost of goods sold of $3,320,000; and operating expenses of $1,166,000. Assume a target income of 15% of average invested assets. Compute residual income for the division:

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