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Information for Drone On Limited is shown below: Selling price Variable expenses Per Unit $ 1,050 735 Percentage of Sales 100% 70% Contribution margin $
Information for Drone On Limited is shown below: Selling price Variable expenses Per Unit $ 1,050 735 Percentage of Sales 100% 70% Contribution margin $ 315 30% Total fixed expenses are $65,000 per month, and the company is selling 1.100 drones per month Required: 1. The marketing manager argues that a $5,000 increase in the monthly budget to prepare webinars would increase monthly sales by 50 drones. Should the webinar budget be increased? Yes No 2. Refer to the original data. Management is considering using higher quality components that would increase the variable cost by $70 per unit. The marketing manager believes the higher-quality product would increase sales by 20% per month. Should the higher- quality components be used? Yes NO
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