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Data for Hermann Corporation are shown below: Percent of Sales 100% 65 35% Per Unit $120 Selling price Variable expenses Contribution margin 78 $ 42
Data for Hermann Corporation are shown below: Percent of Sales 100% 65 35% Per Unit $120 Selling price Variable expenses Contribution margin 78 $ 42 Fixed expenses are $84,000 per month and the company is selling 2,600 units per month Required 1-a. The marketing manager argues that a $8,900 increase in the monthly advertising budget would increase monthly sales by $19,500. Calculate the increase or decrease in net operating income 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 1B The marketing manager argues that a $8,900 increase in the monthly advertising budget would increase monthly sales by $19,500. Calculate the increase or decrease in net operating income. (Do not round intermediate calculations Net operating income by
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