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Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4) [The following information applies to the questions displayed below) Data for
Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4) [The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Percent or Per Unit sales Selling price $ 120 1000 Variable expennen 78 65 Contribution nargin $42 354 Fixed expenses are $84,000 per month and the company is selling 2,600 units per month Exercise 5-5 (Algo) Part 1 Required: 1-0. How much will net operating income increase (decrease) per month if the monthly advertising budget Increases by $8,900, the monthly sales volume Increases by 100 units, and the total monthly sales increase by $12,000? 1-6. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 10 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,000? (Do not round Intermediate calculations) Not operating income
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