Question: Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [ [The following information applies to the questions displayed below Data
Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [ [The following information applies to the questions displayed below Data for Hermann Corporation are shown below: Percent o Sales 100% 65 35% Per Unit $ 60 Selling price Variable expenses Contribution margin 39 $ 21 Fixed expenses are $72,000 per month and the company is selling 4,200 units per month. Exercise 5-5 Part 1 Required 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600 and monthly sales increase by $23,000? 1-b. Should the advertising budget bd 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 $9,600 and monthly sales increase by $23,000? (Do not round intermediate calculations.) Req 1A Req 1B 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs b hts eBook Req 1A Req 1B Hint Should the advertising budget be increaserd. Print ReferencesOYes No K Req 1A Rec
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