Question: Exercise 5-5 (Static) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L05-4] (The following information applies to the questions displayed below.) Data for
![and Volume (L05-4] (The following information applies to the questions displayed below.)](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668e1813efc0d_307668e18138ffba.jpg)

Exercise 5-5 (Static) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L05-4] (The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 90 63 $ 27 Percent of Sales 100% 70 Fixed expenses are $30,000 per month and the company is selling 2,000 units per month Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000, the monthly sales volume increases by 100 units, and the total 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. Reg 1A Reg 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000 the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000? Net operating income by Red 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, the monthly sales volume increases by 100 units, and the total 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. Reg 1A Reg 1B Should the advertising budget be increased? Yes ONO
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