During 2004 Elway Corporation transferred inventory to Howell Corporation and agreed to repurchase the merchandise early in 2005. Howell then used the inventory as collateral to borrow from Norwalk Bank, remitting the proceeds to Elway. In 2005 when Elway repurchased the inventory, Howell used the proceeds to repay its bank loan. 4. This transaction is known as a(n):

a. consignment.
b. installment sale.
c. assignment for the benefit of creditors.
d. product financing arrangement.

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