On June 1, 2022, Wildhorse Co. was started with an initial investment in the company of $19,750 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2022, and the revenues and expenses for the month of June, its first month of operations: Cash $4,960 Notes payable $12,720
Accounts receivable 4,340 Accounts payable 840
Service revenue 7,900 Supplies expense 860
Supplies 2,291 Maintenance and repairs expense 700
Advertising expense 400 Utilities expense 200
Equipment 24,800 Salaries and wages expense 1,000
Common stock 19,750

Required:
During June. the company issued no additional stock but paid dividends of $1,372

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