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: Per Unit $ 95 Percent of Sales 100% Selling price Variable expenses Contribution margin 60 $ 38 408 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 $17,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,400 and monthly sales increase by $17,000? (Do not round intermediate calculations.) Net operating income 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: Percent of Sales 1008 Selling price Variable expenses Contribution margin Per Unit $ 95 57 $ 38 409 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-qualit 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. Reg 2A Reg 2B 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 by