Data for Hermann Corporation are shown below. Percent Per Unit of Sales Selling price $ 85 1000 Variable expenses 51 60 Contribution margin $ 34 401 Fixed expenses are $77,000 per month and the company is selling 2,600 units per month. Exercise 6-5 (Algo) Part 1 Required: 1-0. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,200, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,500? 1-6. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B How much wil net operating income increase (decrease) per month the monthly advertising budget Increases by $8,200, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,500? (Do not round intermediate calculations.) Net operating income by Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format Income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating incomo Amount $ 143,000 57,200 85,800 20.000 $ 65,800 Percent of Sales 1001 401 601 Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 26% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 26% increase in unit sales Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Using the degree of operating leverage, estimate the impact on net operating income of a 26% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (.e.1234 should be entered as 12.34):) Net operating income by % Construct a new contribution format income statement for the company assuming a 26% increase in unit sales. Engberg Company Contribution Income Statement Amount Percent of Sales % % 0 % 0