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: Percent of Sales 100% 60 Per Unit $ 85 51 $ 34 Selling price Variable expenses Contribution margin 40% 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? 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: Percent of Sales 100% 60 Per Unit $ 85 51 $ 34 Selling price Variable expenses Contribution margin 40% Fixed expenses are $77,000 per month and the company is selling 2,600 units per month. Exercise 5-5 Part 1 Required: 1-a. 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