At the break-even price, a. the firm is making just enough money to cover all its costs, including the opportunity costs of the entrepreneur. b. economic profit is zero. c. the atc curve is at its minimum. d. all of the above.

Data for hermann corporation are shown below: per unit percent of sales selling price $ 125 100 % variable expenses 80 64 contribution margin $ 45 36 % fixed expenses are $85,000 per month and the company is selling 2,700 units per month. required: 1-a. how much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000 and monthly sales increase by $20,000? 1-b. should the advertising budget be increased?