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Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price $ 65 106% Variable expenses 39 56 Contribution margin 5 25
Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price $ 65 106% Variable expenses 39 56 Contribution margin 5 25 49% Fixed expenses are $73,000 per month and the company is selling 4,300 units per month. Required: 1-a. HOW much will net operating income increase [decrease] per month ifthe montth advertising budget increases by $9,700, the monthly sales volume increases by 100 units, and the total monthly sales increase by $6500? 1b. Should the advertising budget be increased? Complete this question by entering your answers in the labs below. Req 1A Req IB How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,300, the monthlyr sales volume increases by 100 units, and the total monthly sales increase by $6,500? {Do not round intermediate calculations.) _:-:l
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