Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Fixed expenses are $86

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Data For Hermann Corporation Are Shown Below Selling Price Variable Expenses Contribution Margin Fixed Expenses Are 86 1 (93.42 KiB) Viewed 8 times

Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Fixed expenses are $86,000 per month and the company is selling 2,800 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100, the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,000? 1-b. Should the advertising budget be increased? Req 1A Complete this question by entering your answers in the tabs below. Req 1B Per Unit $ 130 78 $ 52 Net operating income Percent of Sales 100% 60 40% How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100, the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,000? (Do not round intermediate calculations.) ▼by increases decreases Req 1A Req 1B >
Req 1A Req 1B Should the advertising budget be increased? Yes No