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Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Fixed expenses are $84,000 per month and
Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Required (see below for a hint if you get stuck): 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900 and the monthly sales volume increases by 100 units? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,000 ? (Do not round intermediate calculations.) Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. -a. Refer to the data above. How much will net operating income increase (decrease) per month if the company uses higher-quality omponents that increase the variable expense by $5 per unit and increase unit sales by 20%. (See below for a hint if you are having ouble getting to the right answer.) -b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higherquality components that increase the variable expense by $5 per unit and increase unit sales by 20%
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