[The following information applies to the questions displayed below.]

Data for Hermann Corporation are shown below:

Fixed expenses are $82,000 per month and the company is selling 3,500 units per month.

	Per Unit				Percent of Sales
Selling price	$	110				100	%
Variable expenses	$	77				70	%
Contribution margin	$	33				30	%

Fixed expenses are $82,000 per month and the company is selling 3,500 units per month.

1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,700 and monthly sales increase by $19,800?

2a. 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 $5 per unit and increase unit sales by 20%.