Question
Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 140 100% Variable expenses 91 65 Contribution margin $ 49
Data for Hermann Corporation are shown below:
| Per Unit | Percent of Sales | |
|---|---|---|
| Selling price | $ 140 | 100% |
| Variable expenses | 91 | 65 |
| Contribution margin | $ 49 | 35% |
Fixed expenses are $88,000 per month and the company is selling 3,000 units per month.
Required:
1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,300, the monthly sales volume increases by 100 units, and the total monthly sales increase by $14,000?
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Auditing And Accounting On Aix
Authors: IBM Redbooks
1st Edition
0738418501, 978-0738418506
