If the country enters a period of prosperity, resulting in consumer income increasing by 4% and the income elasticity of a good is 0.8, what will happen to the demand for that good as a result? a. demand will increase by 1.2%b. demand will increase by 3.2%c. demand will increase by 4.8%

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?