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Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L06-4) The following information applies to the questions displayed below.) Data

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Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L06-4) The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below. Percent of Per Unit $ 130 Selling price Variable expenses Contribution margin $ 52 AK Fixed expenses are $86,000 per month and the company is selling 2,800 units per month Exercise 6-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9100 an monthly sales increase by $20,500? 1-5. Should the advertising budget be increased?

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