0 Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6.4) [The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Percent of Sales 1001 selling price Variable expenses Contribution margin Per Unit $140 91 $ 49 354 Fixed expenses are $88,000 per month and the company is selling 3,000 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 $9,300 and monthly sales increase by $21,000? 1-b. Should the advertising budget be increased? Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4) [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below. Percent of Per Unit Selling price Variable expenses Contribution margin Sales 1000 $140 91 $ 49 350 Fixed expenses are $88,000 per month and the company is selling 3,000 units per month Exercise 6-5 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 $6 per unit and increase unit sales by 20% 2-6. Should the higher quality components be used