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Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5-4] (The following information applies to the questions displayed below Data for Hermann

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Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5-4] (The following information applies to the questions displayed below Data for Hermann Corporation are shown below Percent Selling price Variable expenses Contribution margin Per Unit 180 61 39 ales 100% 61 39% Fixed expenses are $80,000 per month and the company is selling 3,700 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 monthly sales increase by $17.500 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tab s below Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget i and monthly sales increase by $17,500? (Do not round intermediate calculations.) ncreases by $8,500

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