The following information applies to the questions displayed below. Data for Herron Corporation are shown below: Fixed expenses are $75,000 per month and the company is selling 3,000 units per month. (Input the amount as a positive value.) Required: The marketing manager believes that an $8,000 increase in the monthly advertising budget would increase monthly sales by $15,000. Calculate the increase or decrease in net operating income. Should the advertising budget be increased? Yes No Management is considering using higher-quality components that would increase the variable cost by $3 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. Should the higher-quality components be used? Yes No