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0 Required information The following information applies to the questions displayed below. Data for Hermann Corporation are shown below: Percent o Sales 100 65 35%

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0 Required information The following information applies to the questions displayed below. Data for Hermann Corporation are shown below: Percent o Sales 100 65 35% Per Unit Selling price Variable expenses Contribution margin 80 52 s 28 Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. Required: 1-a. The marketing manager argues that a $10,000 increase in the monthly advertising budget would increase monthly sales by $25,000. Calculate the increase or decrease in net operating income. 1-b. Should the advertising budget be increased

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