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Imjust looking to check my work so if someone could solve it that would be great. EXERCISE 6-5 Changes in Variable Costs, Fixed Costs, Selling
Imjust looking to check my work so if someone could solve it that would be great.
EXERCISE 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume LO6-42 Data for Hermann Corporation are shown below: Per Unit Percent of Sales $90 63 $27 Selling price Variable expenses Contribution margin 100% 70 30% Fixed expenses are $30,000 per month and the company is selling 2,000 units per month Required. 1. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000 and monthly sales increase by $9,000? 2. 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 $2 per unit and increase unit sales by 10%Step by Step Solution
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