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Required information. Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO6-4] [The following information applies to the questions displayed below]
Required information. Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO6-4] [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 80 Percent of Sales 100% 52 65 $ 28 35% Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. nces 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 $10,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,000? 1-b. Should the advertising budget be increased? Required information Complete this question by entering your answers in the tabs below. Req 1A Req 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $10,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,000? (Do not round intermediate calculations.) Not operating income by Req1A Req 18 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Should the advertising budget be increased? OYes ONO
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