Percent of Selling price Variable expenses Contribution margin Per Unit $120 78 $-42 Sales 100% 65 35% Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Exercise 5-5 (Algo) Part 1 Required: 1-a. How much wnet operating income increase (decrease) per month if the monthly advertising budget increases by $8,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,000? (Do not round intermediate calculations.) Net operating income by eBook Exercise 5-5 (Algo) Part 1 Hint Print 28mpany is selling 2,600 units per month, Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900, 1 monthly sales volume increases by 100 units, and the total monthly sales increase by $12,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. References Req 1A Req 18 Should the advertising budget be increased? OYes ONO < Req 1A Reg 18 The following information applies to the questions displayed below Data for Hermann Corporation are shown below. Selling price Variable expenses Contribution margin Per Unit $120 Percent of Sales 100% 78 $42 65 35% Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Exercise 5-5 (Algo) Part 2 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 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 28 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 20%. Net operating income by Reg 2A Req 2B > 52 Selling price Variable expenses Contribution margin Per Unit Percent of Sales $ 120 100% 78 65 $ 42 35% Fixed expenses are $84,000 per month and the company is selling 2,600 units per month Exercise 5-5 (Algo) Part 2 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 20% 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req ZA Req 281 Should the higher-quality components be used? OYes ONO