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CHINESE TO PINYI... 16 &... W Do Androids Drea... [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Sales 100% 61% Per Unit $ 100 61 Selling price Variable expenses Contribution margin $ 39 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per month value: 10.00 points Required: 1-a. The marketing manager argues that a $8,500 increase in the monthly advertising budget would increase monthly sales by $17,500. Calculate the increase or decrease in net operating income. (Round any unit calculations up to the nearest whole unit.) Net operating income increases by - . 1-b. Should the advertising budget be increased? O Yes No Hints References eBook & Resources Hint #1 Check my work value; 10.00 points 2-a. Refer to the original data Management is considering using higher-quality components that would increase the variable expense by $3 per unit. The marketing manager believes that the higher-quality product would increase sales by 15% per month. Calculate the change in total contribution margin. Total contribution margin by 26. Should the higher-quality components be used? Yes No Hints References eBook & Resources Hint #1

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