[The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Per Unit $ 115 Percent of Sales 100% Selling price Variable expenses 60% Contribution margin $ 46 40% Fixed expenses are $83,000 per month and the company is selling 2,500 units per month Required: 1-a. The marketing manager argues that a $8,800 increase in the monthly advertising budget would increase monthly sales by $19,000. Calculate the increase or decrease in net operating income. Net operating income 1-b. Should the advertising budget be increased? Yes O No 2-a. Refer to the original data. Management is considering using higher-quality components that would increase the variable expense by $5 per unit. The marketing manager believes that the higher-quality product would increase sales by 15% per month. Calculate the change in total contribution margin. Total contribution margin 2-b. Should the higher-quality components be used? Yes O No