[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Per Unit $ 95 57 Percent of Sales 100% 60% Contribution margin $ 38 40% Fixed expenses are $79,000 per month and the company is selling 3,600 units per month. Required: 1-a. The marketing manager argues that a $8,400 increase in the monthly advertising budget would increase monthly sales by $17,000. Calculate the increase or decrease in net operating income. Net operating income decreases by $ 1,600 1-b. Should the advertising budget be increased? O Yes 2-a. Refer to the original data. Management is considering using higher-quality components that would increase the variable expense by $3 per unit. The marketing manager believes that the higher-quality product would increase sales by 10% per month. Calculate the change in total contribution margin. Total contribution margin increases by $ 138,600 2-b. Should the higher-quality components be used? Yes