The following monthly data are available for Madison Company and its only product Sales Variable Expenses Contribution Margin Fixed Expenses Operating Income Total $110,000 $44,000 $66,000 $52,800 $13,200 Per Unit $275 $110 $165 Required: (Consider each case independently and use the Incremental Approach) a. The Production Manager is contemplating the use of plastic gearing rather than metal gearing in the manufacture of the product. This change would reduce variable costs by $22. The company's marketing manager predicts that this would reduce the overall quality of the product and thus would result sales decreasing by 35 units per month. Should this change be made? b. The Marketing Manager wants to increase sales and feels that this can be done by reducing the selling price by $20 per unit and increasing the advertising budget by $17,000 per month Management believes that these actions will increase unit sales by 40%. Should these changes be made? c. Management wants to automate a portion of the production process. The new equipment would reduce direct labour costs by $25 per unit but would result in a monthly rental cost for the new robotic equipment of $12,000 Management believes that the new equipment will increase the reliability of the product, thus resulting in an increase in monthly sales of 15%. Should these changes be made