Data for Hermann Corporation are shown below: Per Unit $ 90 63 $ 27 Percent of...
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Data for Hermann Corporation are shown below: Per Unit $ 90 63 $ 27 Percent of Sales 100 70 Selling price Variable expenses Contribution nargin 30% Fixed expenses are $78,000 per month and the company is selling 3,500 units per month. Required: ta. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,300 and monthly sales increase by $16,200? 1b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,300 and monthly sales increase by $16,200? (Round any unit calculations up to the nearest whole unit.) Data for Hermann Corporation are shown below: Per Unit $ 90 63 $ 27 Percent of Sales 100 70 Selling price Variable expenses Contribution nargin 30% Fixed expenses are $78,000 per month and the company is selling 3,500 units per month. Required: ta. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,300 and monthly sales increase by $16,200? 1b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,300 and monthly sales increase by $16,200? (Round any unit calculations up to the nearest whole unit.)
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Related Book For
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
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