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! Required information [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin

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! Required information [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 80 44 $ 36 Percent of Sales 100% 55 45% 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 and monthly sales increase by $14,400? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Rea 1A Rea 1B

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