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 $ 90 100% 63 70 $ 27 30% Fixed expenses are $78,000 per month and the company is selling 3,500 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 $8,300, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000? 1-b. Should the advertising budget be increased?

Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,300, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000 ? itb. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,300, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000 ? (Do not round intermediate calculations.) 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: Fixed expenses are $78.000 per month and the company is selling 3.500 units per month. xercise 6.5 (Algo) Part 1 equired: a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,300, the onthly sales volume increases by 100 units, and the total monthly sales increase by $9,000 ? b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Should the advertising budget be increased