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Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below. Percent Selling price Variable expenses Contribution

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Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below. Percent Selling price Variable expenses Contribution margin Per Unit of Sales $100 61 100% 61 $ 39 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per mont Required: 1-8. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500, the monthly sales volume increases by 100 units, and the total monthly sales increase by $10,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Ben 14 Rea 16

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