Data for Herron Corporation are shown below:

Data for Herron Corporation are shown below:Per UnitPercentof Sales Selling price$80100% Variable expenses6480% Contribution margin$1620% Fixed expenses are $74,100 per month and the company is selling 4,600 units per month. (Input the amount as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.)References eBook & Resources Section BreakExercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO4] 3. value:1.80 points Required information Exercise 5-5 Part 1Required:1a.The marketing manager believes that an $7,400 increase in the monthly advertising budget would increase monthly sales by $17,000. Calculate the increase or decrease in net operating income. Net operating income (Click to select)decreasesincreases by$ 1b.Should the advertising budget be increased ?NoYesHints References eBook & Resources Hint #1Ask your instructor a questionCheck my work 4. value:1.80 points Required information Exercise 5-5 Part 22a.Management is considering using higher-quality components that would increase the variable cost by $6 per unit. The marketing manager believes that the higher-quality product would increase sales by 14% per month. Calculate the change in total contribution margin. Total contribution margin (Click to select)decreasesincreases by$ 2b.Should the higher-quality components be used?YesNo