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Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per UnitPercent of SalesSelling price$135100%Variable expenses8160Contribution margin$5440%
Required information
[The following information applies to the questions displayed below.]
Data for Hermann Corporation are shown below:
Per UnitPercent of SalesSelling price$135100%Variable expenses8160Contribution margin$5440%
Fixed expenses are $87,000 per month and the company is selling 2,900 units per month.
Required:
1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,200 and monthly sales increase by $20,250?
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