Simmons marketing (sm) has the capacity to produce 10,000 fax machines per year. sm currently produces and sells 7,000 units per year. the fax machines normally sell for $100 each. modem products has offered to buy 2,000 fax machines from sm for $60 each. unit-level costs associated with manufacturing each fax machine are $15 for direct labor and $40 for direct materials. product-level and facility-sustaining costs are $50,000 and $65,000, respectively. what is sm's current profit (net income)?

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