Financial information obtained from Tencent Limited is shown as below Selling price Variable expenses Contribution margin Per unit $90 63 $27 Percent of sales 100% 70% Fixed expenses are S43,000 per month and the company is selling 4,000 units per montlh. Required: Use vertical incremental approach (each part: 1 column and 3 rows figures) The marketing manager believes that S8,000 increase in the monthly advertising budget would increase monthly sales by S29,000. Should the advertising budget be increased? Explain briefly in one short sentence. (13 marks) 1. Refer to the original data. Management is considering using higher-quality components. The marketing manager believes that the higher-quality product would increase sales by 6% and increase the variable cost by S5 per unit per month. Should the higher-quality components be used? Explain briefly in one short sentence. (12 marks) 2