Information for Drone On Limited is shown below:

Per Unit Percentage of Sales Selling price $ 1,350 100 % Variable expenses 1,080 80 % Contribution margin $ 270 20 % Total fixed expenses are $35,000 per month, and the company is selling 2,000 drones per month.

Required: 1. The marketing manager argues that a $5,600 increase in the monthly budget to prepare webinars would increase monthly sales by 50 drones. Should the webinar budget be increased? YES or NO

2. Refer to the original data. Management is considering using higher-quality components that would increase the variable cost by $110 per unit. The marketing manager believes the higher-quality product would increase sales by 30% per month. Should the higher-quality components be used? YES or NO