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Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent of Per Unit $ 100 61 Sales 100% 61 $
Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent of Per Unit $ 100 61 Sales 100% 61 $ 39 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500, the monthly sales volume increases by 100 units, and the total monthly sales increase by $10,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500, the monthly sales volume increases by 100 units, and the total monthly sales increase by $10,000? (Do not round intermediate calculations.) Net operating income by
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Answer Req 1A Net Operating Income IncreaseDecrease We can analyze the impact on net operating income by considering the changes in Sales The total mo...Get Instant Access to Expert-Tailored Solutions
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