.a.)

b.)

c.)

Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 120 78 $ 42 Percent of Sales 100% 65 35% Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900 and monthly sales increase by $18,000? 1-b. Should the advertising budget be increased? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900 and monthly sales increase by $18,000? (Round any unit calculations up to the nearest whole unit.) Net operating income decreases by $ 9,100 X Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 120 78 $ 42 Percent of Sales 100% 65 35% Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. -a. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase ne variable expense by $5 per unit and increase unit sales by 20%. -b. Should the higher-quality components be used? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 2A Req 2B How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. Net operating income increases by 9.100 X Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $120 78 $ 42 Percent of Sales 100% 65 35% Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900 and monthly sales increase by $18,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900 and monthly sales increase by $18,000? (Round any unit calculations up to the nearest whole unit.) Net operating income by