Required information

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

Data for Hermann Corporation are shown below:

Fixed expenses are $$74,000$ per month and the company is selling $4,400$ units per month.

Required:

$1-$a$.$ How much will net operating income increase $($decrease$)$ per month if the monthly advertising budget increases by $$9,800,$ the

monthly sales volume increases by $100$ units, and the total monthly sales increase by $$7,000?$

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

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

How much will net operating income increase $($decrease$)$ per month if the monthly advertising budget increases by $$9,800,$

the monthly sales volume increases by $100$ units, and the total monthly sales increase by $$7,000?$

Note: Do not round intermediate calculations.

Required information

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

Data for Hermann Corporation are shown below:

Fixed expenses are $$74,000$ per month and the company is selling $4,400$ units per month.

$?-$a$.$ Refer to the original data. How much will net operating income increase $($decrease$)$ per month if the company uses higher$-$quality

:omponents that increase the variable expense by $$4$ per unit and increase unit sales by $25\%.$

$?-$b$.$ Should the higher$-$quality components be used?

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

Refer to the original data. How much will net operating income increase $($decrease$)$ per month if the company uses higher$-$

quality components that increase the variable expense by $$4$ per unit and increase unit sales by $25\%.$