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Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below. Percent of Selling price Variable expenses

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Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below. Percent of Selling price Variable expenses Per Unit $120 Sales 100% 78 65 Contribution margin $ 42 351 Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900 and monthly sales increase by $18,000? 1-b. Should the advertising budget be increased? 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 $8,900 and monthly sales increase by $18,000? (Round any unit calculations up to the nearest whole unit.) Net operating income by Reg 1A Req 1B > Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Selling price Variable expenses Per Unit $120 Sales. 100% 78 65 Contribution margin $ 42 358 Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900 and monthly sales increase by $18,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Should the advertising budget be increased? OYes ONO < Req 1A Req 18 >

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