Required:

1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,800 and monthly sales increase by $24,000?

1-b. Should the advertising budget be increased?

Please include work.

Data for Hermann Corporation are shown below: Percent of Sales 1008 Selling price Variable expenses Contribution margin Per Unit $ 70 49 $ 21 70 30% Fixed expenses are $74,000 per month and the company is selling 4,400 units per month. Exercise 2-5 (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 and monthly sales increase by $24,000? 1-b. Should the advertising budget be increased? X Answer is not complete. 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 $9,800 and monthly sales increase by $24,000? (Do not round intermediate calculations.) Net operating income decreases by