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Data for Hermann Corporation are shown below. Selling price Variable expenses Contribution margin Percent Per Unit of Sales $ 95 100% 57 60 $ 38 40% Fixed expenses are $79.000 per month and the company is selling 3,600 units per month Exercise 6-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,400, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 13 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,400, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,500? (Do not round intermediate calculations.) Net operating income Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent Per Unit of Sales $ 95 1003 57 60 $ 38 408 Fixed expenses are $79,000 per month and the company is selling 3,600 units per month Exercise 6-5 (Algo) Part 2 2-a. 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 $3 per unit and increase unit sales by 10% 2-b. Should the higher-quality components be used? Complete this question by enterin) your answers in the tabs below. Reg 2A Reg 28 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 $3 per unit and increase unit sales by 10% Not operating income by Mauro Products distributes a single product, a woven basket whose selling price is $24 per unit and whose variable expense is $17 per unit. The company's monthly fixed expense is $20,300. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) baskets 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales 3. Break-even point in dollar sales baskets Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company's monthly fixed expense is $31.900. Required: 1. Calculate the unit sales needed to attain a target profit of $6.250. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,400 (Round your intermediate calculations to the nearest whole number.) 1. Units sales to attain target profit 2. Dollar sales to attain target profit units Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: oped Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 24 $ 14 $ 8,300 980 look Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2. What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (.e. 1234 should be entered as 12.34).) Hint 1. Margin of safety (in dollars) 2. Margin of safety percentage d 430 The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel's business is highly seasonal with peaks occurring during the ski season and in the summer. Occupancy- Electrical Month Days Costa January 3,560 $ 6,573 February 3,420 $ 6,209 March 4,120 $ 7,022 April 1.990 $ 5,174 May $ 1,118 June 1,750 $ 4,550 July 3,690 $ 6,687 August 3,970 $ 6,968 September 1,950 $ 5,070 October 1,450 $ 3,770 November 2,050 $ 5,330 December 2,300 $ 5,980 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy.day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) t nces Variable cost of electricity Fixed cost of electricity por occupancy-day per month