Data for Hermann Corporation are shown below:

Data for Hermann Corporation are shown below Per Unit $135 81 Percent of Sales 100% 60% Selling price Variable expenses Contribution margin 54 40% Fixed expenses are $87,000 per month and the company is selling 2,900 units per month value 9.09 points Required: 1-a. The marketing manager argues that a $9,200 increase in the monthly advertising budget would increase monthly sales by $21,000. Calculate the increase or decrease in net operating income. Net operating income 1-b. Should the advertising budget be increased? Yes O No