The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 90 100% Variable expenses 63 70% Contribution margin $ 27 30% Fixed expenses are $78,000 per month and the company is selling 3,500 units per month. 2.value: 3.00 pointsRequired information Required:

1-a. The marketing manager argues that a $8,300 increase in the monthly advertising budget would increase monthly sales by $16,500. Calculate the increase or decrease in net operating income.

1-b. Should the advertising budget be increased? Yes No