Required information [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 $ 75 Sales 100% 51 68 $ 24 32% Fixed expenses are $75,000 per month and the company is selling 4,000 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,500? 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 $9,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,500? (Do not round intermediate calculations.) Net operating income Help Save & Ex Required information (The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $75 Percent of Sales 100% 51 $24 68 32% Fixed expenses are $75,000 per month and the company is selling 4,000 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req Should the advertising budget be increased? Yes No Help Save & Exit 51 [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below. Part 2 of 2 Selling price Variable expenses Contribution margin Per Unit $ 75 51 Percent of Sales 100% 68 $ 24 32% Fixed expenses are $75,000 per month and the company is selling 4,000 units per month. 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 by Req 28 > Required information [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 Sales $ 75 100% 51 $24 68 32% Fixed expenses are $75,000 per month and the company is selling 4,000 units per month. 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 Should the higher-quality components be used? Yes ONO