Gentle ben's bar and restaurant uses 5,000 quart bottles of an imported wine each year. the effervescent wine costs $3per bottle and is served only in whole bottles because it loses its bubbles quickly. ben figures that it costs $10 each time anorder is placed, and holding costs are 20 percent of the purchase price. it takes three weeks for an order to arrive. weeklydemand is 100 bottles (closed two weeks per year) with a standard deviation of 30 bottles. ben would like to use an inventory system that minimizes inventory cost and will provide a 95 percent service probability. a. what is the economic quantity for ben to order? b. at what inventory level should he place an order?

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