Question: 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.)

 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: Percent of Sales

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: Percent of Sales 1000 Selling price Variable expenses Contribution margin Per Unit $ 50 28 $ 22 56 249 Fixed expenses are $70,000 per month and the company is selling 4,000 units per month Exercise 5-5 (Algo) Part 1 Required: 1-0. 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? 1-6. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B 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.) Not operating income by Complete this question by entering your answers in the tabs below. Reg 1A Req 18 Should the advertising budget be increased? O Yes No

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