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Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Sales 100% 65 Per Unit

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Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Sales 100% 65 Per Unit $ 140 91 Selling price Variable expenses Contribution margin $ 49 35% Fixed expenses are $88,000 per month and the company is selling 3,000 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,300 and monthly sales increase by $25,200? 1-b. Should the advertising budget be increased? Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,300 and monthly sales increase by $25,200? (Round any unit calculations up to the nearest whole unit.) Net operating income by Req 1A Req 1B Should the advertising budget be increased? OYes ONO

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