Question: Required information IThe following information applies to the questions displayed below.J Data for Hermann Corporation are shown below: Percent of Per Unit Sales 135 Selling


Required information IThe following information applies to the questions displayed below.J Data for Hermann Corporation are shown below: Percent of Per Unit Sales 135 Selling price 1008 81 variable expenses 60 54 40% Contribution margin Fixed expenses are $87,000 per month and the company is selling 2,900 units per month. Required 1-a. The marketing manager argues that a $9,200 crease in the monthly advertising budget would increase monthly sales by $21,000. Calculate the increase or decrease in net operating income. 1-b. Should the advertising budget be increased
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