Required information Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below. Selling price Variable expenses Contribution margin Percent Per Unit of Sales 100% 65 35% $ 80 52 $ 28 Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. Exercise 6-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $10,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,000? 1-b. Should the advertising budget be increased? Fixed expenses are pro, per out and the company is selling 4,800 units per Exercise 6-5 (Algo) Part 1 Required: 1-8. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $10,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req LA Req 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $10,000. the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,0002 (Do not round intermediate calculations.) Net operating income by Req LA Req 18 > 12 42:35 Exercise 6-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $10,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Cook Req 1A Req 18 ant Print erences Should the advertising budget be increased? Yes No Chapter 6 Graded Homework i Saved 4 mixed ex de 3/0,000 per mon Company is s Exercise 6-5 (Algo) Part 2 Part 2 of 2 15 points Help Save & Exit Submit Check my work 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 25% 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. 01:42:17 eBook Req 2A Req 28 Hint Should the higher-quality components be used? Print Oves References ONO 4 ried experb de 300 per monture Cupany Stang 4.000 uninsp Check my Part 2 of 2 15 points 2014205 Exercise 6-5 (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 $5 per unit and increase unit sales by 25% 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. eBook Req 2A Req 28 Hint Print 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 25%. References Net operating income by