Question: Please help! And please explain how to get answers so I can learn how to do it on future problems. Thanks in advance! I'll be


Please help! And please explain how to get answers so I can learn how to do it on future problems. Thanks in advance! I'll be sure to give a thumbs up.
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent Per Unit of Sales $ 105 Selling price Variable expenses 100% 63 60% $ 42 Contribution margin 40% Fixed expenses are $81,000 per month and the company is selling 3,800 units per month. value: 10.00 points Required: 1-a. The marketing manager argues that a $8,600 increase in the monthly advertising budget would increase monthly sales by $18,000. Calculate the increase or decrease in net operating income. |by Net operating income 1-b. Should the advertising budget be increased? Yes No 2-a. Refer to the original data. Management is considering using higher-quality components that would increase the variable expense by $4 per unit. The marketing manager believes that the higher-quality product would increase sales by 20% per month. Calculate the change in total contribution margin. Total contribution margin by 2-b. Should the higher-quality components be used? Yes No
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