EXERCISE 3-5 Changes In Variable Costs, Flxed Costs, Selling Price, and Volume [LO 3-4] Data for Herron Corporation are shown below: 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 sqles by $15,000. Sliould the advertising budiget be increased? 2. Refer to the original data. Management is considering using kigher-quality components t would increase the variable cost by $3 per unit. The marketing manager bolieves that the higher-quality product would increase sales by 15% per month. Should the higher-quality components be used