Answer Happy

Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. Exercise 6-5 (Algo) Part 1 Percent Per Unit of Sales $ 100 100% 61 61 $ 39 398 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500, the monthly sales volume increases by 100 units, and the total monthly sales increase by $10,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 18 Req 1A How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500, the monthly sales volume increases by 100 units, and the total monthly sales increase by $10,000? (Do not round intermediate calculations.) Net operating income by
Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent Per Unit of Sales $100 100% 61 61 $39. 398 Selling price Variable expenses Contribution margin Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. Exercise 6-5 (Algo) Part 2 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-qua 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. Req 2A Req 28 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