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Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 130 78 $ 52 Percent of Sales 1005 60

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Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 130 78 $ 52 Percent of Sales 1005 60 400 Fixed expenses are $86,000 per month and the company is selling 2,800 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 $9,100, the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,000? 1-b. Should the advertising budget be increased? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1A Req 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100, the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,000? (Do not round intermediate calculations.) Net operating Income decreases by 900 RegiA Req 18 >

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