[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent Per Unit of Sales $ 60 39 $ 21 100% 65 35% Fixed expenses are $72,000 per month and the company is selling 4,200 units per month. Exercise 6-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600, the monthly sales volume increases by 100 units, and the total monthly sales increase by $6,000? 1-b. 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 Percent Per Unit of Sales $ 60 39 100% 65 $ 21 35% Fixed expenses are $72,000 per month and the company is selling 4,200 units per month. Exercise 6-5 (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?