Required information

Exercise $5-5($Algo$)$ Changes in Variable Costs, Fixed Costs, Selling Price, and Volume

$[$L$05-4]$

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

Data for Hermann Corporation are shown below:

Fixed expenses are $$73,000$ per month and the company is selling $4,300$ units per month.

Exercise $5-5($Algo$)$ Part $1$

Required:

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

$$9,700,$ the monthly sales volume increases by $100$ units, and the total monthly sales increase by $$6,500?$

$1-$b$.$ Should the advertising budget be increased?

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 $$9,700,$

the monthly sales volume increases by $100$ units, and the total monthly sales increase by $$6,500?($Do not round intermediat,

calculations.$)$