[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent Per Unit of Sales $ 75 Selling price Variable expenses 100% 51 68% $24 Contribution margin 32% Fixed expenses are $75,000 per month and the company is selling 4,000 units per month. 2. value: Required information 1.00 points Required: 1-a. The marketing manager argues that a $9,900 increase in the monthly advertising budget would increase monthly sales by $24,500. Calculate the increase or decrease in net operating income. decreases $ 2,060 by Net operating income 3. value: Required information 1.00 points 2-a. Refer to the original data. Management is considering using higher-quality components that would increase the variable expense by $4 per unit. The marketing manager believes that the higher-quality product would increase sales by 25% per month. Calculate the change in total contribution margin. Total contribution margin increases by 2-b. Should the higher-quality components be used? Yes No