Question: Data for Hermann Corporation are shown below: Selling price Variable expenses Per Unit Percent of Sales $ 85 51 $ 34 100% 60 40%


Data for Hermann Corporation are shown below: Selling price Variable expenses Per Unit Percent of Sales $ 85 51 $ 34 100% 60 40% Contribution margin Fixed expenses are $77,000 per month and the company is selling 2,600 units per month. Exercise 5-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,200, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,500? 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 advertising budget increases by $8,200, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,500? (Do not round intermedia calculations.) Net operating income by Complete this question by entering your answers in the tabs below. Req 1A Req 1B Should the advertising budget be increased? Yes ONO
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