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Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $100 - 61 $ 39 Percent of Sales 100% 61

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Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $100 - 61 $ 39 Percent of Sales 100% 61 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500 and monthly sales increase by $17,500? 1-5. Should the advertising budget be increased? Req 1A Req 18 How much will net operating income increase (decrease) per month if the monthly advertising budget Increases by $8,500 and monthly sales increase by $17,500? (Round any unit calculations up to the nearest whole unit.) Net operating income RA Req 18 ) Reg 1A Reg 18 Should the advertising budget be increased? OYes int NO

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