250 units and total sales by $ 1,VOU! EXERCISE 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume LO6-4 Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price . ... $90 100% Variable expenses.. 63 70% Contribution margin ....... $27 30% Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Required: 1. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000? 2. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $2 per unit and increase unit sales by 10%. EXERCISE 6-6 Break-Even Analysis LO6-5