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Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price $ 65 100% Variable expenses 39 60 Contribution margin $ 25
Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price $ 65 100% Variable expenses 39 60 Contribution margin $ 25 40% Fixed expenses are $8,000 per month and the company is selling 4,300 units per month. Exercise 5-5 (Algal Part 1 Required: 'I-a. How much will net operating income increase [decrease] per month if the monthly advertising budget increases by $9300, the monthly sales volume increases by 100 units. and the total monthly sales increase by $5,500? 'I-b. Should the advertising budget be increased
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