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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 $ 120 78 $ 42 Percent of Sales 100% 65 35% Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900 and monthly sales increase by $19,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900 and monthly sales increase by $19,500? (Do not round intermediate calculations.) Net operating income by Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 1B Should the advertising Duuyet ve increased? Yes ONO

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