Data for Hermann Corporation are shown below:

	Per Unit				Percent of Sales
Selling price	$	120				100	%
Variable expenses		78				65
Contribution margin	$	42				35	%

Fixed expenses are $84,000 per month and the company is selling 2,600 units per month.

2-a. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and increase unit sales by 20%.

Net Operating income increases by _____

Data for Hermann Corporation are shown below:

	Per Unit				Percent of Sales
Selling price	$	120				100	%
Variable expenses		78				65
Contribution margin	$	42				35	%

Fixed expenses are $84,000 per month and the company is selling 2,600 units per month.

1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900 and monthly sales increase by $18,000?

Net Operating income decreases by _____