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! Required information [ The following information applies to the questions displayed below. ] Data for Hermann Corporation are shown below: Fixed expenses are $

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Required information
[The following information applies to the questions displayed below.]
Data for Hermann Corporation are shown below:
Fixed expenses are $73,000 per month and the company is selling 4,300 units per month.
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?
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