Question: 1) The Sales Help Sav Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5-4) The following information applies to
1) The Sales Help Sav Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5-4) The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below Sales 1008 64 368 $125 80 Selling price ariable expenses Contribution argin545 Fixed expenses are $85,000 per month and the company is selling 2.700 units per month. Exercise 5-5 Part 1 Required: -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? Complete this question by entering your answers in the tabs below
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