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The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below Per Unit $ 110 Percent of Sales 100% Selling

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The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below Per Unit $ 110 Percent of Sales 100% Selling price Variable expenses 7 70 Contribution margin 33 30% Fixed expenses are $82.,000 per month and the company is selling 3,500 units per month. 3. value: 0.50 points Required: nager argues that a $8,700 increase in the monthly advertising budget would increase monthly sales by $18,500. Calculate the increase or decrease in net operating income. 1-b. Should the advertising budget be increased? Yes No

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