U 2 Estimate uit by $1,500 ts. Selling Price, and Volume [L04] EXERCISE 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volum Data for Herron Corporation are shown below: Per Unit $75 Percent of Sales 100% 60% 40% A5 Selling price.................. Variable expenses ..... Contribution margin ....... Fixed expenses are $75,000 per month and the company is selling 3,000 units per month. Required: 1. The marketing manager believes that an $8,000 increase in the monthly advertising budget would increase monthly sales by $15,000. Should the advertising budget be increased? 2. Refer to the original data. Management is considering using higher-quality components un would increase the variable cost by $3 per unit. The marketing manager believes that higher-quality product would increase sales by 15% per month. Should the higit components be used