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Required information [ The following information applies to the questions displayed below. J Data for Hermann Corporation are shown below: Percent of Per- Unit Sales

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Required information [ The following information applies to the questions displayed below. J Data for Hermann Corporation are shown below: Percent of Per- Unit Sales Selling price $ 125 180% Variable expenses 88 64 Contribution margin 5 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,500? 1-b. Should the advertising budget be increased

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