Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO6-4) [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $100 51 $ 39 Percent of Sales 1000 61 390 Fixed expenses are $80,000 per month and the company is selling 3.700 units per month Exercise 6-5 Part 1 Required: 1-a How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8.500 and monthly sales increase by $17,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 16 How much will net operating income increase (decrease) per month of the monthly advertising budget Increases by $8,500 and monthly sales increase by $17,500? (Round any unit calculations up to the nearest whole unit) Net operating income by Reg 10 > Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L06-4) [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below. Selling price Variable expenses Contribution margin Per Unit $100 61 $ 39 Percent of Sales 1001 61 398 Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. Exercise 6-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500 and monthly sales increase by $17,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg LA Reg ze Should the advertising Rengat be increased? Yes No