What is the estimated change in the company's net operating income if it can increase total sales by S1,000 EXERCISE 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume LO5-4 Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $90 100% Variable expenses 63 70 Contribution margin $27 30% Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Required: Page 228 1. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000 and monthly sales increase by $9,000? 2. 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 $2 per unit and increase unit sales by 10 %