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Data for Hermann Corporation are shown below: Percent of Sales 100% Per Unit $ 90 63 Selling price Variable expenses Contribution margin 70 $ 27

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Data for Hermann Corporation are shown below: Percent of Sales 100% Per Unit $ 90 63 Selling price Variable expenses Contribution margin 70 $ 27 30% Fixed expenses are $78,000 per month and the company is selling 3,500 units per month. Exercise 6-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,300 and monthly sales increase by $16,500? 1-b. Should the advertising budget be increased

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