The following monthly data are available for the ING Company and its only product, Product SW: Total Per Unit Sales (400 units) $110,000 $275 Variable expenses 48,000 120 Contribution margin 62,000 $155 Fixed expenses 48,800 Operating income $ 13,200 Instructions a) Management is contemplating the use of plastic gearing rather than metal gearing in Product S1. This change would reduce variable costs by $7. The company's marketing manager predicts this would reduce the overall quality of the product and thus would result in a decline in sales to a level of 380 units per month. Should this change be made? (6 marks) b) Assume that ING Company is currently selling 400 units of Product S1 per month. Management wants to increase sales and feels that this can be done by cutting the selling price by $10 per unit and increasing the advertising budget by $23,000 per month. Management believes that these actions will increase unit sales by 50%. Should these changes be made? (6 marks)