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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 1005 Per Unit $125

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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 1005 Per Unit $125 BO Selling price Variable expenses Contribution margin $45 365 Fixed expenses are $85,000 per month and the company is selling 2,700 units per month Required: 1-0. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000 and monthly sales increase by $20,000? 1.b. Should the advertising budget be increased

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