Data for Hermann Corporation are shown below Percent of Sales 100 60 Per Unit $ 135 81 $ 54 Selling price Variable expenses Contribution margin 40 Fixed expenses are $87,000 per month and the company is selling 2,900 units per month Required 1 a How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,200 and monthly sales increase by $20,250 1 b Should the advertising budget be increased Complete this question by entering your answers in the tabs below Req 1A Reg 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,200 and monthly sales increase by $20,250 (Round any unit calculations up to the nearest whole unit ) Net operating income by Data for Hermann Corporation are shown below Selling price Variable expenses Contribution margin Per Unit $ 135 81 $ 54 Percent of Sales 100 60 40 Fixed expenses are $87,000 per month and the company is selling 2,900 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 $5 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 Req 2A Req 2B 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 $5 per unit and increase unit sales by 20 Net operating income by

Question

Data for Hermann Corporation are shown below  Percent of Sales 100  60 Per Unit $ 135 81 $ 54 Selling price Variable expenses Contribution margin 40  Fixed expenses are $87,000 per month and the company is selling 2,900 units per month  Required  1 a  How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,200 and monthly sales increase by $20,250  1 b  Should the advertising budget be increased  Complete this question by entering your answers in the tabs below  Req 1A Reg 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,200 and monthly sales increase by $20,250  (Round any unit calculations up to the nearest whole unit ) Net operating income by Data for Hermann Corporation are shown below  Selling price Variable expenses Contribution margin Per Unit $ 135 81 $ 54 Percent of Sales 100  60 40  Fixed expenses are $87,000 per month and the company is selling 2,900 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 $5 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  Req 2A Req 2B 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 $5 per unit and increase unit sales by 20   Net operating income by

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Data for Hermann Corporation are shown below: Percent of Sales 100% 60 Per Unit $ 135 81 $ 54 Selling price Variable expenses Contribution margin

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