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3 ! Required information Part 1 of 2 [The following information applies to the questions displayed below.] 1.6 points eBook Data for Hermann Corporation
3 ! Required information Part 1 of 2 [The following information applies to the questions displayed below.] 1.6 points eBook Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 120 78 Percent of Sales 100% 65 $ 42 35% Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Hint Ask Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,000? 1-b. Should the advertising budget be increased? Print Complete this question by entering your answers in the tabs below. References Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,000? (Do not round intermediate calculations.) Net operating income by < Req 1A Req 1B >
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