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Required information Exercise 6.5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO6-4) (The following information applies to the questions displayed below.) 3.33

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Required information Exercise 6.5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO6-4) (The following information applies to the questions displayed below.) 3.33 points Data for Hermann Corporation are shown below: Per Unit $ 80 Percent of Sales 1008 eBook Selling price Variable expenses Contribution margin 65 Fixed expenses are $76,000 per month and the company is selling 4,600 units per month Exercise 6-5 Part 1 Print Required 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget Increases by $10,000 and monthly sales increase by $25,000? 1-b. Should the advertising budget be increased? References 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 $10,000 and monthly sales increase by $25,000? (Do not round intermediate calculations.) Net operating income by

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