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Data for Hermann Corporation are shown below: Percent Per Unit of Sales Selling price Variable expenses Contribution margin $ 80 52 100% 65 $
Data for Hermann Corporation are shown below: Percent Per Unit of Sales Selling price Variable expenses Contribution margin $ 80 52 100% 65 $ 28 351 Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $10,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $10,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,000? (Do not round intermediate calculations.) Net operating income by Selling price Variable expenses Contribution margin rer UBA UL DRIES $ 80 52 100% 65 $ 28 358 Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $10,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Should the advertising budget be increased? OYes ONO
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