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Data for Hermann Corporation are shown below: Per unit Percent of Sales Selling price $90 100% Variable expenses 63 70% Contribution margin $27 30% Fixed
Data for Hermann Corporation are shown below: Per unit Percent of Sales Selling price $90 100% Variable expenses 63 70% Contribution margin $27 30% Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. 20.value: 6 points You did NOT receive full credit for this question in previous attempt. Requirement 1: (a) Calculate the increase or decrease in net operating income if a $5,000 increase in the monthly advertising budget would increase monthly sales by $9,000. (Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.) Net operating income $ (b) Should the advertising budget be increased as suggested in requirement 1(a) above
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