Required information Exercise 5-7 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Unit Sales [LO5-7) [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below Selling price Variable expenses Contribution margin Per Unit Percent of Sales $ 50 100% 28 $22 56 44% Fixed expenses are $70,000 per month and the company is selling 4,000 units per month. Exercise 5-7 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $11,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $5,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Req 18 Should the advertising budget be increased? > [The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $.50 28 $22 Percent of Sales 100% 36 44% Fixed expenses are $70,000 per month and the company is selling 4,000 units per month Exercise 5-7 (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 $4 per unit and increase unit sales by 25% 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 $4 per unit and increase unit sales by 25%. Net operating income Req215>