Question: Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L06-4) [The following information applies to the questions displayed below.) Data

 Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling
Price, and Volume (L06-4) [The following information applies to the questions displayed
below.) Data for Hermann Corporation are shown below: Selling price Variable expenses

Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (L06-4) [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 135 81 $ 54 Percent of Sales 1008 60 408 Fixed expenses are $87,000 per month and the company is selling 2,900 units per month Exercise 6-5 Part 1 Required: 1-a. How much will net operating income increase (decreasel per month if the monthly advertisina budoet increases hv $9200 and Exercise 6-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,200 and monthly sales increase by $20,250? 1-6. 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 of the monthly advertising budget increases by $9,200 and monthly sales increase by $20,250? (Round any unit calculations up to the nearest whole unit.) Net operating income by Real Reg 1B > 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Should the advertising budget be increased? OYes O No ses

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