Question: Data for Hermann Corporation are shown below: Selling price variable expenses Contribution margin Per Unit $ 140 91 s 49 Percent of Sales 100% 65
Data for Hermann Corporation are shown below: Selling price variable expenses Contribution margin Per Unit $ 140 91 s 49 Percent of Sales 100% 65 358 Fixed expenses are $88,000 per month and the company is selling 3,000 units per month Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,300 and monthly sales increase by $21,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below Req IAReq 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,300 and monthly sales increase by $21,500? (Do not round intermediate calculations.) et operating income The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Per Unit $140 Selling price Variable expenses Contribution margin Sales 100 % 65 358 9 1 s 49 Fixed expenses are $88,000 per month and the company is selling 3,000 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $6 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below Req 2A Req 2B Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $6 per unit and increase unit sales by 20%
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