Exercise 4-4 Changes in Variable Costs, Fixed Costs, and Volume [LO4] Information for Drone On Limited is shown below: Selling price Variable expenses Contribution margin Percentage Per Unit of Sales $ 1,100 660 100% 60% $ 440 40% Total fixed expenses are $55,000 per month, and Drone On Limited is selling 1,200 drones per month. Required: 1. The marketing manager argues that a $5,100 increase in the monthly budget to prepare webinars would increase monthly sales by 50 drones. Should the webinar budget be increased? Yes O No 2. Refer to the original data. Management is considering using higher-quality components that would increase the variable cost by $110 per unit. The marketing manager believes the higher-quality product would increase sales by 30% per month. Should the higher- quality components be used? Yes O No