Question: Having troubles with this one. Data for Hermann Corporation are shown below: Percent of Sales 100% 64% Per Unit Selling price Variable expenses 125 80

Having troubles with this one.

Data for Hermann Corporation are shown below: Percent of Sales 100% 64% Per Unit Selling price Variable expenses 125 80 Contribution margin $ 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. Required information 187 points Required: 1a. The marketing manager argues that a $9,000 increase in the monthly advertising budget would increase monthly sales by $20,000. Calculate the increase or decrease in net operating income b Should the advertising budget be increased? O Yes O No HintsReferences eBook & Resources Hint #1

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to test high potential managers by throwing them in at the deep end;

to enable the development of managers in depth as well as in breadth;

to enable a balance and breadth of global management understanding at senior levels of management;