Question: Check m Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] The following information applies to the questions displayed
Check m Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] The following information applies to the questions displayed below. Data for Hermann Corporation are shown below: Percent of Sales 1008 60 40B Per UnitSa Selling price Variable expenses Contribution margin 95 57 $ 38 Fixed expenses are $79,000 per month and the company is selling 3,600 units per month. Exercise 6-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,400 and monthly sales increase by $17,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,400 and monthly sales increase by $17,000? (Do not round intermediate calculations.) t operating income Req 1B
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