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

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Required information [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below. Selling price Variable expenses Contribution margin Per Unit $ 90 63 $ 27 Percent of Sales 1008 70 30 Fixed expenses are $78,000 per month and the company is selling 3,500 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,300 and monthly sales increase by $16,200? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,300 and monthly sales increase by $16,200? (Round any unit calculations up to the nearest whole unit.) Net operating income by Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget in monthly sales increase by $16,200? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Should the advertising budget be increased? Yes O No

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