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Percent Per Unitof Sales Selling price Variable expenses $ 100 100% 61% 61 Contribution margin $ 39 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. value: 9.09 points Required: 1-a. The marketing manager argues that a $8,500 increase in the monthly advertising budget increase monthly sales by $17,500. Calculate the increase or decrease in net operating in Net operating income 1-b. Should the advertising budget be increased? Yes O No Hints References eBook& Resources Hint #1 value: 9.09 points 2-a. Refer to the original data. Management is considering using higher-quality components that would increase the variable expense by $3 per unit. The marketing manager believes that the higher-quality product would increase sales by 15% per month. Calculate the change in total contribution margin. Total contribution margin 2-b. Should the higher-quality components be used? O Yes No eBook & Resources Hints References