[The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Percent of Sales 100% 60% Per Unit $ 130 78 Selling price Variable expenses Contribution margin $ 52 40% Fixed expenses are $86,000 per month and the company is selling 2,800 units per month. value: 10.00 points Required: 1-a. The marketing manager argues that a $9,100 increase in the monthly advertising budget would increase monthly sales by $19,500. Calculate the increase or decrease in net operating income. (Round any unit calculations up to the nearest whole unit.) Net operating income by 1-6. Should the advertising budget be increased? Yes No 2-a. Refer to the original data. Management is considering using higher-quality components that would increase the variable expense by $6 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 by 2-b. Should the higher-quality components be used? Yes No