Exercise 5-5 (Algo) 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: Selling price Variable expenses Contribution margin Per Unit $ 65 39 $ 26 Percent of Sales 1001 60 400 Fixed expenses are $73,000 per month and the company is selling 4,300 units per month. Exercise 5-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,700, the monthly sales volume increases by 100 units, and the total monthly sales increase by $6,500? 1-6. Should the advertising budget be increased? Exercise 5-5 (Algo) 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: Selling price Variable expenses Contribution margin Per Unit $ 65 39 $ 26 Percent of Sales 1000 60 400 Fixed expenses are $73,000 per month and the company is selling 4,300 units per month. Exercise 5-5 (Algo) 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 $5 per unit and increase unit sales by 25% 2.b. Should the higher quality components be used