first question adds to second set of questions

The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent ales lee% Selling price Variable expenses Contribution margin s 185 63 $ 42 40% Fixed expenses are $81,000 per month and the company is selling 3,800 units per month. Required: 1-a. How much willnet operating income increase (decrease) per month if the monthly advertising budget increases by $8600 and monthly sales increase by $18,000? 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 $8,600 and monthly sales increase by $18,000? (Do not round intermediate calculations.) Required information [The following information applies to the questions displayed below Data for Hermann Corporation are shown below: Per Unit s 105 63 Percent of Sales 1 00% 60 Selling price Variable expenses Contribution margin 42 Fixed expenses are $81,000 per month and the company is selling 3,800 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 $4 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 hig quality components that increase the variable expense by $4 per unit and increase unit sales by 20%. Complete this question by entering your answers in the tabs below. Req 2A Req 2B Should the higher-quality components be used? Yes Req 2A Req 2B