Exercise $5-7($Static$)$ Changes in Variable Costs, Fixed Costs, Selling Price, and Unit Sales $[$L$05-7]$

$[$The following information applles to the questions displayed below.$]$

Data for Hermann Corporation are shown below:

Fixed expenses are $$30,000$ per month and the company is selling $2,000$ units per month.

Exercise $5-7($Static$)$ Part $1$

Required:

$1-$a$.$ How much will net operating income increase $($decrease$)$ per month if the monthly advertising budget increases by $$5,000,$ the

monthly sales volume increases by $100$ units, and the total monthly sales increase by $$9,000?$

$1-$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.

How much will net operating income increase $($decrease$)$ per month if the monthly advertising budget increases by $$5,000,$

the monthly sales volume increases by $100$ units, and the total monthly sales increase by $$9,000?$