Required information

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

Data for Hermann Corporation are shown below:

$!$

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?

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

Req $1A$

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?($Do not round

intermediate calculations.$)$