Question: Data for Hermann Corporation are shown below Selling price Variable expenses Contribution margin Per Unit 5130 78 $ 52 Percent of Sales 100% 60 403



Data for Hermann Corporation are shown below Selling price Variable expenses Contribution margin Per Unit 5130 78 $ 52 Percent of Sales 100% 60 403 Fixed expenses are $86,000 per month and the company is selling 2,800 units per month Required: monthly sales increase by $19,500? 1-0 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100 and 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100 and monthly sales increase by $19,500? (Round any unit calculations up to the nearest whole unit.) Req 18 Req 1A Req 1B ces Should the advertising budget be increased? Yes ONO Data for Hermann Corporation are shown below Selling price Variable expenses Contribution margin Per Unit $ 130 78 $ 52 Percent of Sales 100% 63 40% Fixed expenses are $86,000 per month and the company is selling 2,800 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 15% 2-b Should the higher quality components be used? Complete this question by entering your answers in the tabs below. Reg za Req 28 Refer to the onginal 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 15%. Ne pincome LY R2A Req 28 > Req 2A Req 2B Should the higher-quality components be used? OYes No
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