Data for Hermann Corporation are shown below Selling price Variable expenses Contribution margin Per Unit $ 105 63 .$ 42 Percent of Sales 100% 60 40% Fixed expenses are $81,000 per month and the company is selling 3,800 units per month Exercise 5-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,600, the monthly sales volume increases by 100 units, and the total monthly sales increase by $10,500? 1.b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,600, the monthly sales volume increases by 100 units, and the total monthly sales increase by $10,500? (Do not round Intermediate calculations.) Net operating income Data for Hermann Corporation are shown below Percent of Sales 100% 60 Per Unit $ 105 63 $ 42 Selling price Variable expenses Contribution margin tex Fixed expenses are $81,000 per month and the company is selling 3,800 units per month Exercise 5-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8.600, the monthly sales volume increases by 100 units, and the total monthly sales increase by $10,500? 1-6 Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Should the advertising budget be increased? Yes ONo Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $105 63 $ 42 Percent of Sales 100% 60 40% Fixed expenses are $81,000 per month and the company is selling 3,800 units per month Exercise 5-5 (Algo) Part 2 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 $4 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. Reg 2A Reg 28 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 $4 per unit and increase unit sales by 20%. Net operating income by Data for Hermann Corporation are shown below: . Selling price Variable expenses Contribution margin Per Unit $105 63 5.42 Percent of Sales 100% 60 40% Fixed expenses are $81,000 per month and the company is selling 3,800 units per month Exercise 5-5 (Algo) Part 2 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 $4 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. Reg 2A Reg 28 Should the higher-quality components be used? OYoo No
