Required information 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 Selling price Variable expenses Contribution margin Per Unit $ 95 Percent of Sales 100% 57 60 $ 38 40% Fixed expenses are $79,000 per month and the company is selling 3,600 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 by $8,400 and monthly sales increase by $17,100? 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 $8,400 and monthly sales increase by $17,100? (Round any unit calculations up to the nearest whole unit.) Net operating income by Req 18 > Required information 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. Selling price Variable expenses Contribution margin Percent of Per Unit $ 95 Sales 100% 57 60 $ 38 40% Fixed expenses are $79,000 per month and the company is selling 3,600 units per month Exercise 5-5 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 $3 per unit and increase unit sales by 10% 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 $3 per unit and increase unit sales by 10%. Net operating income Req 28 >