[The following information applies to the questions displayed below.]

Data for Hermann Corporation are shown below:

	Per Unit				Percent of Sales
Selling price	$	75				100	%
Variable expenses		51				68
Contribution margin	$	24				32	%

Fixed expenses are $75,000 per month and the company is selling 4,000 units per month.

Required:

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?

Should the advertising budget be increased?