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CoursHeroTranscribedText: 2 Required Information Part 1 of 2 [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: 10 Percent of points Per Unit Sales Selling price $130 1008 Variable expenses 78 60 Contribution margin $ 52 108 eBook Fixed expenses are $86,000 per month and the company is selling 2,800 units per month. Hint Required: Print 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100 and monthly sales increase by $19,500? 1-b. Should the advertising budget be increased? References Complete this question by entering your answers in the tabs below. Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100 and monthly sales increase by $19,500? (Round any unit calculations up to the nearest whole unit.) Net operating income decreases by 3 Required information Part 2 of 2 (The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below. 10 Percent of points Per Unit Sales Selling price $130 1001 Variable expenses 79 60 Contribution margin $ 52 "Book Fixed expenses are $86,000 per month and the company is selling 2,800 units per month. Hint Print 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 15%. 2-b. Should the higher-quality components be used? References Complete this question by entering your answers in the tabs below. Req ZA Req 28 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 15%. Net operating income increases by

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