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Information for Drone On Limited is shown below Selling price Variable expenses Contribution margin Per Unit $1,300 925 Percent of Sales 100% 753 325 25%

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Information for Drone On Limited is shown below Selling price Variable expenses Contribution margin Per Unit $1,300 925 Percent of Sales 100% 753 325 25% 3:45 Total fixed expenses are $40.000 per month, and the company is selling 1.900 drones per month. Required: 1. The marketing manager argues that a $5,500 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 $100 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 No

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