Question: Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4] [The following information applies to the questions displayed below.] Data

 Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling

Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 120 78 $ 42 Percent of Sales 100% 65 35% Fixed expenses are $84,000 per month and the company is selling 2,600 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 $8,900 and monthly sales increase by $19,500? 1-b. Should the advertising budget be increased

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