3 Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5-4] The following information applies to the questions displayed below. Data for Hermann Corporation are shown below Part 1 of 2 Percent of Sales 100% 70 30% 10 points Per Unit s 70 Selling price Variable expenses 49 02:56:00 Contribution margin s 21 Fixed expenses are $74,000 per month and the company is selling 4,400 units per month Exercise 5-5 Part 1 Required 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,800 and monthly sales increase by $24,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs belovw Req 1A Req 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,800 and monthly sales increase by $24,000? (Do not round intermediate calculations.) Net operating income Req 1A Req 1B > Req 1A Req 1B Should the advertising budget be increased? Yes ONo