$60 Per Unit Percent of Sales Selling price....... Q2) Data for Voltar Corporation are shown below. Fixed expenses are $40,000 per 100% Variable expenses 48 80% month and the company is selling 2,000 units per month. a. The marketing manager argues that a $5,000 increase in the monthly Contribution margin. $12 20% advertising budget would increase monthly sales by $9,000. Should the advertising budget be increased? Show computations. (10 points) b. Refer to the original data. Management is considering using higher-quality components that would increase the variable cost by $2 per unit. The marketing manager believes the higher-quality product would increase sales by 10% per month. Should the higher-quality components be used? Show computations. (10 points)