1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,200 and monthly sales increase by $16,000?

1-b. Should the advertising budget be increased?

Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per Unit $ 85 51 $ 34 Percent of Sales 100% 60 40% Selling price Variable expenses Contribution margin Fixed expenses are $77,000 per month and the company is selling 2,600 units per month