Saved Help Save & Exit 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: Per Unit $75 Percent of Sales 100% Selling price Variable expenses Contribution margin 51 $24 32% Fixed expenses are $75,000 per month and the company is selling 4,000 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 $4 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used? Saved Help Save & Exit Submit 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: Per Unit $75 Percent of Sales 100% Selling price Variable expenses Contribution margin $ 24 Fixed expenses are $75,000 per month and the company is selling 4,000 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 $9.900 and monthly sales increase by $24,500? 1-b. Should the advertising budget be increased