Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L06-4) (The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 140 91 $ 49 Percent of Sales 100% 65 35% Fixed expenses are $88,000 per month and the company is selling 3.000 units per month Exercise 6-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9.300 and monthly sales increase by $21,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Required: 7-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $ monthly sales increase by $21,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,300 and monthly sales increase by $21,000? (Round any unit calculations up to the nearest whole unit) Net operating income by Reg 1B > Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Should the advertising budget be increased? Ores No ( Req 1A Exercise 6-5 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 $6 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below Red 2A Reg 28 Refer to the original dato: How much will net operating income increase (decrease) per month of the company uses higher quality components that increase the variable expense by $6 per unit and increase unit sales by 20% Net operating income by Reg 20 Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 Should the higher quality components be used? Yes No