CISE 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [L04] Data for Herron Corporation are shown below: Per Unit $75 45 Percent of Sales 100% 60% 40% Selling price Variable expenses R Contribution margin . . .$30 Fixed expenses are $75,000 per month and the company is selling 3,000 units per month. Required: I. The marketing manager believes that an S8,000 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 that would increase the variable cost hy S3 per unit. The marketing manager helieves that the higher-quality product would increase sales by 15% per month. Should the higher-quality components be used