Required information Exercise 6-5 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 Percent o Sales 100% 70 Per Unit s 70 Selling price Variable expenses Contribution margin 49 $ 21 Fixed expenses are $74,000 per month and the company is selling 4,400 units per month. Exercise 6-5 Part 1 Required get increase 1-a. How much will net operating income increase (decrease) per month if the monthly advertising bud monthly sales increase by $24.000? 1-b. Should the advertising budget be increased? Required information Exercise 6-5 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 Percent o Sales 100% 70 Per Unit s 70 Selling price Variable expenses Contribution margin 49 $ 21 Fixed expenses are $74,000 per month and the company is selling 4,400 units per month. Exercise 6-5 Part 1 Required get increase 1-a. How much will net operating income increase (decrease) per month if the monthly advertising bud monthly sales increase by $24.000? 1-b. Should the advertising budget be increased?