Question
I was out sick and missed this portion of my class. Can anyone please answer the following but provide a breakdown so I can do
I was out sick and missed this portion of my class. Can anyone please answer the following but provide a breakdown so I can do the others?
Data for Herron Corporation are shown below:
Per Unit | Percent of Sales | |||
Selling price | $ | 60 | 100% | |
Variable expenses | 39 | 65% | ||
Contribution margin | $ | 21 | 35% | |
Fixed expenses are $72,000 per month and the company is selling 4,200 units per month.
a.The marketing manager believes that an $9,600 increase in the monthly advertising budget would increase monthly sales by $23,000. Calculate the increase or decrease in net operating income. |
| |||
b.
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