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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 Percent Per Unit of Sales $ 75 1009 51 68 $ 24 324 Fixed expenses are $75,000 per month and the company is selling 4,000 units per month Required: 1-a. How much will net operating Income increase (decrease) per month if the monthly advertising budget increases by $9,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,500? 1-b. Should the advertising budget be increased? Required information [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent Per Unit of Sales $ 75 1008 51 68 $ 24 32 Fixed expenses are $75,000 per month and the company is selling 4.000 units per month. 2-a. 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% 2-6. Should the higher-quality components be used

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