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Homework - Problem #1 - Data for Hermann Corporation are shown below: Per Unit Selling...

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Homework - Problem #1 - Data for Hermann Corporation are shown below: Per Unit Selling price... $90 Variable expenses Contribution margin Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Required: 1. The marketing manager argues that a $5,000 increase in the monthly advertising budget would increase monthly sales by $9,000. Should the advertising budget be increased? 2. Refer to the original data. Management is considering using higher-quality components that would increase the variable expense by $2 per unit. The marketing manager believes that the higher-quality product would increase sales by 10% per month. Should the higher- quality components be used

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