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Check my work Required information [The following information applies to the questions displayed below.) Part 1 of 2 Data for Hermann Corporation are shown below:
Check my work Required information [The following information applies to the questions displayed below.) Part 1 of 2 Data for Hermann Corporation are shown below: points Percent of Sales 100% Selling price Variable expenses Contribution margin Per Unit $ 140 91 $ 49 eBook 35% Hint Ask Fixed expenses are $88,000 per month and the company is selling 3,000 units per month Print References Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,300 and monthly sales increase by $21,500? 1-b. Should the advertising budget be increased? Required information The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 140 91 $ 49 Percent of Sales 100% 65 35% Fixed expenses are $88,000 per month and the company is selling 3,000 units per month. 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 $6 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below
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