Question: Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L05-4) [The following information applies to the questions displayed below.) Data for Hermann
Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L05-4) [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent Per Unit of Salon $ 90 1008 63 70 $ 27 305 Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Exercise 5-5 Part 1 Required: 1-0. How much will net operating Income Increase (decrease) per month if the monthly advertising budget Increases by $5,000 and monthly sales increase by $9,000? 1-6. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 13 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000 and monthly sales increase by $9,000? Not operating income increases by $ 2,200
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