Data for Whiteworth Ltd$.$ are shown below:

Fixed expenses are $$25,000$ per month, and the company is selling $2,000$ units per month.

Required:

The marketing manager argues that a $$4,000$ increase in the monthly advertising budget would increase monthly sales by $$8,000.$

Should the advertising budget be increased?

Refer to the original data. Management is considering using higher$-$quality components that would increase the variable cost by $$2\mathrm{.}00$

per unit. The marketing manager believes the higher$-$quality product would increase sales by $10\%$ per month. Should the higher$-$quality

components be used?