Exercise 6-5 (Algo) Changes in Variable Costs. Fixed Costs, Selling Price, and Volume [LO6-4] [The following information applies to the questions Data for Hermann Corporation are shown below: yed below.] Variable expenses Selling price Contribution margin Percent Per Unit of Sales $ 100 61 100% 61 $ 39 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. Exercise 6-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500, the monthly sales volume increases by 100 units, and the total monthly sales increase by $10,000? 1-b. Should the advertising budget be increased? Required: 1-a. How much will net operating income increase (decrease month if the monthly advertising budget increases by $8,500, the monthly sales volume increases by 100 units, and the total monthly sales increase by $10,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500, the monthly sales volume increases by 100 units, and the total monthly sales increase by $10,000? (Do not round intermediate calculations.) Net operating income by Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500, the monthly sales volume increases by 100 units, and the total monthly sales increase by $10,000? 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 Reg 18