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Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [L04] [The following information applies to the questions displayed below.] Data for Herron Corporation are shown below: Fixed expenses are $75, 800 per month and the company is selling 4, 000 units per month. (Input the amount as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.) The marketing manager believes that an $8, 300 increase in the monthly advertising budget would increase monthly sales by $13, 600. Calculate the increase or decrease in net operating income. Should the advertising budget be increased ? No Yes Management is considering using higher-quality components that would increase the variable cost by $3 per unit. The marketing manager believes that the higher-quality product would increase sales by 19% per month. Calculate the change in total contribution margin. Should the higher-quality components be used? No Yes Oslo Company prepared the following contribution format income statement based on a sales volume of 1, 000 units (the relevant range of production is 500 units to 1, 500 units): If the selling price increases by $1.50 per unit and the sales volume decreases by 100 units, what would be the net operating income? (Do not round intermediate calculations.) Oslo Company prepared the following contribution format income statement based on a sales volume of 1, 000 units (the relevant range of production is 500 units to 1, 500 units: How many units must be sold to achieve a target profit of $5, 084? (Do not round intermediate calculations.)