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Exercise 6-5 (Algo) 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: Fixed expenses are $83,000 per month and the company is selling 2,500 units per month. xercise 6-5 (Algo) Part 1 equired: a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,800, the onthly sales volume increases by 100 units, and the total monthly sales increase by $11,500? Whirly Corporation's contribution format income statement for the most recent month is shown below: Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 6,600 units? Last month when Holiday Creations, Incorporated, sold 39,000 units, total sales were $156,000, total variable expenses were $127,920, and fixed expenses were $37,100. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 400 units and total sales b $1,600 ? (Do not round intermediate calculations.)