Question: Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 70 100 % Variable expenses 49 70 Contribution margin $

Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 70 100 % Variable expenses 49 70 Contribution margin $ 21 30 % Fixed expenses are $74,000 per month and the company is selling 4,400 units per month. Exercise 5-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,800, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,000? 1-b. Should the advertising budget be increased?

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