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Required 1A= how much will net operating income increase (decrease) per month of the monthly advertising budget increases by $8,700 the monthly sales volume increases

Required 1A= how much will net operating income increase (decrease) per month of the monthly advertising budget increases by $8,700 the monthly sales volume increases by 100 units, and the total monthly sales increase by $11,00? Required 1B: should the advertising be increased?

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Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price $ 110 100% Variable expenses 77 70 Contribution margin $ 33 30% Fixed expenses are $82,000 per month and the company is selling 3,500 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,700, the monthly sales volume increases by 100 units, and the total monthly sales increase by $11,000? 1-b. Should the advertising budget be increased

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