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Required information [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Per Unit $ 75 Percent of Sales

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Required information [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Per Unit $ 75 Percent of Sales 100% Selling price Variable expenses Contribution margin 51 68 $ 24 32% 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 and monthly sales increase by $24,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,900 and monthly sales increase by $24,500? (Do not round intermediate calculations.) Net operating income by Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Should the advertising budget be increased? Yes ONO Req 1A Reg 1B

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