The following information applies to the questions displayed below.]

Data for Hermann Corporation are shown below:

	Per Unit	Percent of Sales
Selling price	$ 95	100%
Variable expenses	57	60
Contribution margin	$ 38	40%

Fixed expenses are $79,000 per month and the company is selling 3,600 units per month.

Required:

1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,400, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,500?

1-b. Should the advertising budget be increased?