Data for Hermann Corporation are shown below:
tablePer Unit,tablePercentof SalesSelling price,$Variable expenses,Contribution margin,$
Fixed expenses are $ per month and the company is selling units per month.
Required:
a How much will net operating income increase decrease per month if the monthly advertising budget increases by $ the monthly sales volume increases by units, and the total monthly sales increase by $
Should the advertising budget be increased?
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How much will net operating income increase decrease per month if the monthly advertising budget increases by $ the monthly sales volume increases by units, and the total monthly sales increase by $Do not round intermediate calculations.