Required information Exercise 5-5 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 $ 85 51 $ 34 Percent of Sales 1004 60 404 Fixed expenses are $77,000 per month and the company is selling 2,600 units per month Exercise 5-5 Part 1 Required: 1-0. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,200 and monthly sales increase by $16,000? 1-b. Should the advertising budget be increased? 0 Required information Exercise 5-5 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 expenses Contribution margin Per Unit $ 85 51 Percent of Sales 1009 60 409 Fixed expenses are $77,000 per month and the company is selling 2,600 units per month. Exercise 5-5 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 $5 per unit and increase unit sales by 20%. 2-b. Should the higher quality components be used