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Required information

Exercise $6-5($Algo$)$ Changes in Variable Costs, Fixed Costs, Selling Price, and Volume $[$L$06-4]$

$[$The following information applies to the questions displayed below.$]$

Data for Hermann Corporation are shown below:

$\backslash$table$[[,,$Percent$],[,$Per Unit of Sales,,$],[$Selling price,$$65,1008,],[$Variable expenses,$39,60,],[$Contribution margin,$$26,408,],[,,,]]$

Fixed expenses are $$73,000$ per month and the company is selling $4,300$ units per month.

Exercise $6-5($Algo$)$ Part $1$

Required:

$1-$a$.$ How much will net operating income increase $($decrease$)$ per month if the monthly advertising budget increases by $$9,700,$ the monthly sales volume increases by $100$ units, and the total monthly sales increase by $$6,500?$

$1-$b$.$ Should the advertising budget be increased?

Complete this question by entering your answers in the tabs below.

Req $1$ B

How much will net operating income increase $($decrease$)$ per month if the monthly advertising budget increases by $$9,700,$ the monthly sales volume increases by $100$ units, and the total monthly sales increase by $$6,500?($Do not round intermediate calculations.$)$

Net operating income

by

Req$1$A