EXERCISE 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L05-4) Data for Hermann Corporation are shown below: Selling price . . . . . . . . . Variable expenses .......... Contribution margin ......... Per Unit Percent of Sales $90 100% 63 70 $27 30% Regu Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Cost-Volume-Profit Relationships Required: 1. The marketing manager argues that a $5.000 increase in the monthly advertising budget would increase monthly sales by $9.000. Should the advertising budget be increased! Refer to the original data. Management is considering using higher-quality components that would increase the variable expense by $2 per unit. The marketing manager believes that the higher-quality product would increase sales by 10% per month. Should the higher-quality components be used