Question: EXERCISE 2-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume L02-4 Data for Hermann Corporation are shown below: Fixed expenses are $30,000 per
EXERCISE 2-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume L02-4 Data for Hermann Corporation are shown below: Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Cost volume-Profit Relationships Required: 1 How much will net opcrating income increase (decreave) per monh if the mosthly advertising budget increases by $5,000 and monthly ules increave by $9,000 ? 2. Refer to the original data. How moch will ne operaling income increase (decrease) per month if the conpany uses higher-quality components that increave the variable expense by 52 per unit and increase unit sales by 10%. EXERCISE 2-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume L02-4 Data for Hermann Corporation are shown below: Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Cost volume-Profit Relationships Required: 1 How much will net opcrating income increase (decreave) per monh if the mosthly advertising budget increases by $5,000 and monthly ules increave by $9,000 ? 2. Refer to the original data. How moch will ne operaling income increase (decrease) per month if the conpany uses higher-quality components that increave the variable expense by 52 per unit and increase unit sales by 10%
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