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Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 80 44 $ 36 Percent of Sales 100% 55

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Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 80 44 $ 36 Percent of Sales 100% 55 45% Fixed expenses are $76,000 per month and the company is selling 2,500 units per month. Exercise 5-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,100 and monthly sales increase by $14,400? 1-b. Should the advertising budget be increased? Complete this question by entering vour answers in the tabs below. monthly sales increase by $14,400? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Req 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,100 and monthly sales increase by $14,400? (Round any unit calculations up to the nearest whole unit.) Net operating income Reg 14 Req 1B > by decreases increases Complete this question by entering your answers in the tabs below. Reg 1A Reg 11 Should the advertising budget be increased? OYes 10 No

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