Question
Data for Herman Corporation are shown below: Per Unit % Of Sales Selling Price $90 100% Variable Expenses 63 70 _________________________________________________________________________________ Contribution Margin $27 30%
Data for Herman Corporation are shown below:
Per Unit % Of Sales
Selling Price $90 100%
Variable Expenses 63 70
_________________________________________________________________________________
Contribution Margin $27 30%
How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8300, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9000.
Should the advertising budget be increased?
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