38 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 Per Unit of Sales Selling price Variable expenses Contribution margin $ 90 63 100% 70 $ 27 30% Fixed expenses are $30,000 per month and the company is selling 2,000 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 $5,000 and monthly sales increase by $9,000? 1-b. Should the advertising budget be increased? Required: 1-a. 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? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 18 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? Net operating income Req 1A Req 18 > Required: 1-a. 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? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Should the advertising budget be increased? Yes ONO < Req 1A Req 1B >