Question: Data for Hermann Corporation are shown below: Percent Per Unit of Sales Selling price Variable expenses $ 125 80 100% 64 Contribution margin $
Data for Hermann Corporation are shown below: Percent Per Unit of Sales Selling price Variable expenses $ 125 80 100% 64 Contribution margin $ 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. Required (see below for a hint if you get stuck): I-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000 and the monthly sales volume increases by 100 units? l-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,500? (Do not round intermediate calculations.) Net operating income by
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