Data for Hermann Corporation are shown below: Percent Per Unitof Sales $ 110 Selling price Varlable expenses 100% 70% Contribution margin $ 33 30% Fixed expenses are $82.000 per month and the company is selling 3,500 units per month. Required: 1-a. The marketing manager argues that a $8,700 increase in the monthly advertising budget would increase monthly sales by $18,500. Calculate the increase or decrease in net operating income. Net operating income 1-b. Should the advertising budget be increased? Yes No 2-a. Refer to the original data. Management is considering using higher-quality components that would increase the variable expense by $5 per unit. The marketing manager believes that the higher-quality product would increase sales by 20% per month. Calculate the change in total contribution margin. Total contribution margin