Financial information obtained from Kobe Limited is as following: Percent of Per unit sales Selling price $200 100% Variable expenses -140 70% Contribution margin $? Fixed expenses are $50,000 per month and the company is selling 4,000 units per month. Required: Use vertical incremental approach (each part: 1 column and 3 rows figures, and 1 column items/accounts name) a) The promotion manager believes that $11,000 increase in the monthly advertising budget would increase monthly sales by $40,000. Should the advertising budget be increased? Explain briefly in one short sentence (less than 10 words). (8 marks) b) Refer to the above data. Management is considering using higher-quality components. The marketing manager believes that the better-quality product would increase sales volume by 12% and increase the variable cost by $5 per unit per month. Should this proposal be taken? Explain briefly in one short sentence (less than 20 words). (9 marks) c) What is the main use of Target Profit (less than 6 words)? (2 marks)