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The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price $ 90

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The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price $ 90 100% Variable expenses 63 70 Contribution margin $ 27 304 Fixed expenses are $78,000 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 $8,300 and monthly sales increase by $16, 2007 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 $8,300 and monthly sales increase by $16,2007 (Round any unit calculations up to the nearest whole unit.)

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