Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $...
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Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 95 Percent of Sales 100% 57 $38 60 40% Fixed expenses are $79,000 per month and the company is selling 3,600 units per month. Award: 2.00 points Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,400, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,400, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,500? (Do not round intermediate calculations.) Net operating income decreases by < Req 1A Req 1B > Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 95 Percent of Sales 100% 57 $38 60 40% Fixed expenses are $79,000 per month and the company is selling 3,600 units per month. Award: 2.00 points Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,400, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,400, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,500? (Do not round intermediate calculations.) Net operating income decreases by < Req 1A Req 1B >
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1a To calculate how much the net operating income will increase or decrease per month with the given changes we need to consider the contribution marg... View the full answer
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