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Required information Skip to question [ The following information applies to the questions displayed below. ] Data for Hermann Corporation are shown below: Per Unit

Required information
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[The following information applies to the questions displayed below.]
Data for Hermann Corporation are shown below:
Per Unit Percent of Sales
Selling price $ 80100%
Variable expenses 4455
Contribution margin $ 3645%
Fixed expenses are $76,000 per month and the company is selling 2,500 units per month.
Required:
1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,100, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,000?
1-b. Should the advertising budget be increased?

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