ml Help Save & E Che Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5-4] The following information applies to the questions displayed belowJ Data for Hermann Corporation are shown below: Per Unit Selling price Variable expenses Sales ee% 68 32% s 75 51 Contribution margin s 24 Fixed expenses are $75,000 per month and the company is selling 4,000 units per month Exercise 5-5 Part1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,900 and monthly sales increase by $24,500? -b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Prey 3 4 of 11 Next > earch 20: Check my w Required information Exercise 5-5 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 s 75 51 s 24 32% Fixed expenses are $75,000 per month and the company is selling 4,000 units per month. Exercise 5-5 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 $4 per unit and increase unit sales b y 25%. 2-b. Should the higher-quality components be used?