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Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 9 0 1 0 0 % Variable expenses 6 3

Data for Hermann Corporation are shown below:
Per Unit Percent of Sales
Selling price $ 90100%
Variable expenses 6370
Contribution margin $ 2730%
Fixed expenses are $30,000 per month and the company is selling 2,000 units per month.
Required:
1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000?
1-b. Should the advertising budget be increased?

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