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Required information [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent

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Required information [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent Der Unit of Salem $ 90 1009 63 70 $ 27 304 Fixed expenses are $30,000 per month and the company is seling 2,000 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below Reg 1A Reg 1B How much will net operating income increase (decrease) per month if the monthly advertising budget Increases by $5,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000? Net operating income by Required Information [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent Per Unit of Solo $ 90 2009 63 70 $ 27 309 Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Required: 1-0. How much will net operating income increase (decrease) per month If the monthly advertising budget Increases by $5,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000? 1-5. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg IA Reqrie Should the advertising budget be increased? Yes No

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