Question: Data for Herman Corporation are shown below: Per Unit % Of Sales Selling Price $90 100% Variable Expenses 63 70 _________________________________________________________________________________ Contribution Margin $27 30%

Data for Herman Corporation are shown below:

Per Unit % Of Sales

Selling Price $90 100%

Variable Expenses 63 70

_________________________________________________________________________________

Contribution Margin $27 30%

How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8300, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9000.

Should the advertising budget be increased?

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