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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 Per

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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 Per Unit $ 110 77 $ 33 Percent of Sales 100% 70 30% Fixed expenses are $82,000 per month and the company is selling 3,500 units per month Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases b monthly sales increase by $19,800? 1-b. Should the advertising budget be increased? Required information (The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 110 77 $ 33 Percent of Sales 100% 70 30% Fixed expenses are $82,000 per month and the company is selling 3,500 units per month Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases b monthly sales increase by $19,800? 1-b. Should the advertising budget be increased

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