Question: 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
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?


Required information [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below: 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? 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 ? (Do not round intermediate calculations.) Should the advertising budget be increased
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