Question: Can someone please help me with this accounting problem?? ASAP!!!! Page 11 of 13 0 ZOOM Homework - Problem #1 - Data for Hermann Corporation

Can someone please help me with this accounting problem?? ASAP!!!!

Can someone please help me with this accounting problem?? ASAP!!!! Page 11

Page 11 of 13 0 ZOOM Homework - Problem #1 - Data for Hermann Corporation are shown below: Per Unit Selling price $90 Variable expenses .......... 63 Contribution margin ......... $27 Fixed expenses arc $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 S9,000. 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 S2 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? Problem #2

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