Per Unit $ 85 51 Percent of Sales 100% 60% Selling price Variable expenses Contribution margin $ 34 40% Fixed expenses are $77,000 per month and the company is selling 2,600 units per month. 1.25 points Required 1-a. The marketing manager argues that a $8,200 increase in the monthly advertising budget would increase monthly sales by $16,000. Calculate the increase or decrease in net operating income. Net operating income 1-b. Should the advertising budget be increased? Yes 0 No