Data for Hermann Corporation are shown below. Selling price Variable expenses Contribution margin Per Unit Percent...

 

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Data for Hermann Corporation are shown below. Selling price Variable expenses Contribution margin Per Unit Percent of Sales $135 81 100% 60 $ 54 40% Fixed expenses are $87,000 per month and the company is selling 2.900 units per month. Exercise 5-7 (Algo) Part 1 Required: 1-a. How much will net operating Income Increase (decrease) per month if the monthly advertising budget Increases by $9,200, the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Required 1A Required 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,200, the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,500? Note: Do not round intermediate calculations. Net operating income by Data for Hermann Corporation are shown below. Selling price Variable expenses Contribution margin Per Unit Percent of Sales $135 81 100% 60 $ 54 40% Fixed expenses are $87,000 per month and the company is selling 2.900 units per month. Exercise 5-7 (Algo) Part 1 Required: 1-a. How much will net operating Income Increase (decrease) per month if the monthly advertising budget Increases by $9,200, the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Required 1A Required 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,200, the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,500? Note: Do not round intermediate calculations. Net operating income by

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1a To calculate the change in net operating income we need to consider the impact of three factors the increase ... View the full answer