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Required Information Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume LO6-4 The following information applies to the questions displayed below Data for Hermann Corporation are shown below Selling price Variable expenses Contribution Percent Unit of 50100 28 56 22 44 Fixed expenses are $70,000 per month and the company is selling 4,000 units per month Exercise 6-5 (Algo) Part 1 Required: 1 -aHow much will net operating income increase (decrease) per month if the monthly advertising budget increases by $11,000, the monthly sales volume increases by 100 unitsand the total monthly sales increase by $5,000 b. Should the advertising budget be increased?

2 Requirea information Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Percent Per Unit of Sales $ 50 100% 28 56 $ 22 44% Selling price Variable expenses Contribution margin Fixed expenses are $70,000 per month and the company is selling 4,000 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 $11,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $5,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Answer is complete but not entirely correct. Reg 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $11,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $5,000? (Do not round intermediate calculations.)