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Exercise 7 (Changes in Variable Costs, Fixed Costs, Selling Price, and Volume) Data for Rebb Percent of Sales Selling price Variable expenses Contribution margin Per

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Exercise 7 (Changes in Variable Costs, Fixed Costs, Selling Price, and Volume) Data for Rebb Percent of Sales Selling price Variable expenses Contribution margin Per Unit P75 45 P30 100% 60% 40% pxn00 per month and the company is eling.00 unis Required: 1. The marketing manager argues that an P8,000 increase in the monthly advertising budget would increase monthly sales by P15,000. Should the advertising budget be increased? 2. Refer to the original data. Management is considering using higher quality components that would increase the variable cost by P3 per unit. The marketing manager believes the higher-quality product would increase sales by 15% per month. Should the higher-quality components

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