Question
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Selling price Variable expenses Per Unit $110
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Selling price Variable expenses Per Unit $110 Sales 100% 77 70 Contribution margin $ 33 30% Fixed expenses are $82,000 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 $8,700 and monthly sales increase by $19,800? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabe below
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