Question: Required information Exercise 2-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO2-4] [The following information applies to the questions displayed below.]

 Required information Exercise 2-5 (Algo) Changes in Variable Costs, Fixed Costs,

Required information Exercise 2-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO2-4] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Sales 100% 70 Per Unit $ 70 49 $ 21 Selling price Variable expenses Contribution margin 30% Fixed expenses are $74,000 per month and the company is selling 4,400 units per month. Exercise 2-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,800 and monthly sales increase by $24,000? 1-b. Should the advertising budget be increased

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