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Required information {The following information applies to the questions displayed below} Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price

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Required information {The following information applies to the questions displayed below} Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price 5 125 100% Variable expenses 80 64 Contribution margin 5 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. Required: 1-a. Hornr much will net operating income increase [decrease] per month ifthe monthly advertising budget increases by $9,000 and monthly sales increase by $20,000? 1b. Should the advertising budget be increased

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