Question: Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent Per Unit of Sales $75 51 1089 68 $ 24 32%
Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent Per Unit of Sales $75 51 1089 68 $ 24 32% Fixed expenses are $75,000 per month and the company is selling 4,000 units per month. Exercise 6-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Red 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,500? (Do not round intermediate calculations.) Exercise 6-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 18 How much will net operating income increase (decrease) per month if the monthly adver the monthly sales volume increases by 100 units, and the total monthly sales increase by calculations.) Net operating income get increases by $9,900, (Do not round intermediate Exercise 6-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Should the advertising budget be increased? OYes No
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