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Data for Hermann Corporation are shown below:

	Per Unit				Percent of Sales
Selling price	$	130				100	%
Variable expenses		78				60
Contribution margin	$	52				40	%

Fixed expenses are $86,000 per month and the company is selling 2,800 units per month.

Garrison 16e Rechecks 2017-05-02

Required:

1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100 and monthly sales increase by $20,500?

1-b. Should the advertising budget be increased?

How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100 and monthly sales increase by $20,500? (Do not round intermediate calculations.) et operating income by Req 1A Req 1B >