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Information for Drone On Limited is shown below: Selling price Variable expenses Contribution margin Per Unit $ 1,300 975 Percentage of Sales 100% 75% $325

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Information for Drone On Limited is shown below: Selling price Variable expenses Contribution margin Per Unit $ 1,300 975 Percentage of Sales 100% 75% $325 25% Total fixed expenses are $40,000 per month, and Drone On Limited 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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