Required information [The following information applies to the questions displayed below.] Data for Klauer Corporation are...

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Required information [The following information applies to the questions displayed below.] Data for Klauer Corporation are shown below: Percent of Sales 100% Per Unit $ 100 Selling price Variable expenses 61 61 Contribution margin $ 39 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500 and monthly sales increase by $17,500? 1-b. 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 if the monthly advertising budget increases by $8,500 and monthly sales increase by $17,500? (Round any unit calculations up to the nearest whole unit.) Net operating income by Req 1A Req 1B > Reg 1A Reg 1B Should the advertising budget be increased? OYes ONo < Req 1A Reg 1B > 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $3 per unit and increase unit sales by 15%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Reg 2A Req 2B Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $3 per unit and increase unit sales by 15%. Net operating income by < Reg 2A Req 2B > Req 2A Reg 2B Should the higher-quality components be used? Yes ONo < Req 2A Req 2B > Required information [The following information applies to the questions displayed below.] Data for Klauer Corporation are shown below: Percent of Sales 100% Per Unit $ 100 Selling price Variable expenses 61 61 Contribution margin $ 39 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500 and monthly sales increase by $17,500? 1-b. 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 if the monthly advertising budget increases by $8,500 and monthly sales increase by $17,500? (Round any unit calculations up to the nearest whole unit.) Net operating income by Req 1A Req 1B > Reg 1A Reg 1B Should the advertising budget be increased? OYes ONo < Req 1A Reg 1B > 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $3 per unit and increase unit sales by 15%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Reg 2A Req 2B Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $3 per unit and increase unit sales by 15%. Net operating income by < Reg 2A Req 2B > Req 2A Reg 2B Should the higher-quality components be used? Yes ONo < Req 2A Req 2B >

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S olution answer 1 a Change in Net Operating Income 17500 increase in sal... View the full answer