poed Required information Exercise 6-5 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 margin Per Unit $ 59 64 $27 Percent of Sales 100% 70 30% ebook Hunt References 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 and monthly sales increase by $9,000? ed 1-b. Should the advertising budget be increased? Book Complete this question by entering your answers in the tabs below. HM eferences Reg 1A Req 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000 and monthly sales increase by $9,000? NM operating income Complete this question by entering your answers in the tabs below. ed Req 1A Req 1B bok int rences Should the advertising budget be increased? Yes ONO B of 2 Swoord ebook 0 Syferences Required information Exercise 6-5 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 margin Percent Per Unit of Sales 5 20 100% 63 $27 20 30% Fixed expenses are $30,000 per month and the company is selling 2,000 units per month Exercise 6-5 Part 2 2-0 Refer to the original data. However, in the text it is provided as "How much will net operating income increase (decrease) per 0 Exercise 6-5 Part 2 2-a. Refer to the original data. However, in the text it is provided as "How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $2 per unit and increase unit sales by 10% 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. erences Reg 2A Req 28 Refer to the original data. However, in the text it is provided as "How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $2 per unit and increase unit sales by 10% it operating income Req 285>> 2 oed Exercise 6-5 Part 2 2-a. Refer to the original data. However, in the text it is provided as "How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $2 per unit and increase unit sales by 10% 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. ook Req 2A Req 28 References Should the higher-quality components be used? Yes ONO