Required information Exercise 5-5 (Algo) 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 Per Unit $ 130 78 $ 52 Percent of Sales 1005 60 408 Fixed expenses are $86,000 per month and the company is selling 2,800 units per month. Exercise 5-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget Increases by $9,100, the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100, the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,000? (Do not round Intermediate calculations.) Contribution margin $ 52 401 Fixed expenses are $86,000 per month and the company is selling 2,800 units per month Exercise 5-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month of the monthly advertising budget increases by $9,100, the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 10 How much will net operating income increase (decrease) per month if the monthly advertising budget Increases by $9,100, the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,000? (Do not round intermediate calculations.) Not operating income decreases (by aga Req 18 > Required information Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L05-4) [The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Selling price Variable expensen Contribution angin Per Unit $ 130 78 $ 52 Percent of Sales 1000 60 404 Fixed expenses are $86,000 per month and the company is selling 2,800 units per month Exercise 5-5 (Algo) Part 2 2-a. Refer to the original data. How much will not operating income increase (decrease) per month of the company uses higher quality components that increase the variable expense by $6 per unit and increase unit soles by 15% 2.b. Should the higher quality components be used? Complete this question by entering your answers in the tabs below. Reg 2A Rog 20 Refer to the original data. How much will net operating income increase (decrease) per month of the company uses higher quality components that increase the variable expense by $6 per unit and increase unit sales by 15% NI DY Required information Exercise 5-5 (Algo) 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 Per Unit $ 130 78 $ 52 Percent of Sales -1004 60 400 Fixed expenses are $86,000 per month and the company is selling 2,800 units per month Exercise 5-5 (Algo) 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 $6 per unit and increase unit sales by 15%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Should the higher-quality components be used? Yos ONO