EXERCISE $25$ Changes in Variable Costs, Fixed Costs, Selling Price, and Volume$$

Data for Hermann Corporation are shown below:

Fixed expenses are $$30,000$ per month and the company is selling $2,000$ units per month.

Required:$$

How much will net operating income increase $($decrease$)$ per month if the monthly advertising budget increases by $$5,000,$ the monthly sales volumes increase by $100$ units, and monthly sales increase by $$9,000?$

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 $10\%.$