3) Data concerning Phillips Corporation's single product appear below: Fixed expenses are $390,000 per month. The company is currently selling 8,000 units per month. Required: a) The marketing manager believes that an $16,500 increase in the monthly advertising budget would result in a 250 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? b) How will this proposed change affect the contribution margin ratio? c) Instead of spending additional advertising dollars Phillips is considering dropping the unit sales price by 8% to drive sales, they expect a 10% increase in sales if they do this. What would be overall effect to net operating income? d) How will this proposed change affect the contribution margin ratio? e) Should Phillips proceed with (a) or (c) or maintain status quo