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Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price 5 55 160% Variable expenses 39 50 Contribution margin 5 95

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Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price 5 55 160% Variable expenses 39 50 Contribution margin 5 95 40% Fixed expenses are $73,000 per month and the company is selling 4,300 units per month. Required: 'la. HOW much will net operating income increase [decrease] per month ifthe monthly advertising budget increases by $9,700, the monthly sales volume increases by 100 units, and the total monthly sales increase by $6,500? 'lb. Should the advertising budget be increased? Complete this question by entering your answers in the labs below. Req 1A Reg 13 How mud": will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,?00, the monthlyr sales volume increases by 100 units, and the total monthly sales increase by $6,500? (Do not round intermediate calculations.) as [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price $ 65 100% Variable expenses 39 60 Contribution margin $ 26 40% Fixed expenses are $73,000 per month and the company is selling 4,300 units per month. 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 25%. 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 25%. Net operating income by

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