Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price Variable expenses $ 125 100% 80 64 $ 45 36 % Contribution margin Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. Exercise 5-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000 and monthly sales increase by $20,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000 and monthly sales increase by $20,000? (Do not round intermediate calculations.) Net operating income by Req 1A Req 1B Percent of Sales 100% Per Unit Selling price Variable expenses $125 80 64 Contribution margin $ 45 36 % Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. Exercise 5-5 Part 2 2-a. 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 $5 per unit and increase unit sales by 20% 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 2B 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 $5 per unit and increase unit sales by 20% Net operating income by Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $20 per unit. The company's monthly fixed expense is $10,400. Required: 1 Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) 1. Break-even point in unit sales baskets 2. Break-even point in dollar sales 3 Break-even point in unit sales baskets Break-even point in dollar sales