Question: Required information Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5-4] [The following information applies to the questions displayed below.]

 Required information Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs,

Required information Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5-4] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Fixed expenses are $75,000 per month and the company is selling 4,000 units per month. Exercise 5-5 (Algo) Part 1 Required: -a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,900 and monthly sales volume increases by 100 units? -b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. (Do not round intermediate calculations.)

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