Required information [The following information opplies to the questions displayed below.] Data for Hermann Corporation are shown below: Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. Required: -a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9.00 nonthly sales volume increases by 100 units, and the total monthly sales increase by $12,500 ? 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 $9,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,500 ? (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 $85,000 per month and the company is selling 2.700 units per month. a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by Required: monthly sales volume increases by 100 units, and the total monthly sales increase by $12,500 ? -b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Should the advertising budget be increased? Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. 2-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%. Required information [The following information applies to the quiestions displayed below] Data for Hermann Corporation are shown below: Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-qual 2omponents that increase the variable expense by $5 per unit and increase unit sales by 20%. 2.b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Should the higher-quality components be used? Molander Corporation is a distributor of a sun umbrella used at resort hotels. Dota concerning the next month's budget appear below: Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2. What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (li.e. 12.34 should be entered as 12.34).) Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimote the impact on net operating income of a. 6% increase in unit soles. 3. Construct a new contribution format income statement for the company assuming a 6% increase in unit sales. Complete this question by entering your answers in the tabs below. What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Engberg Comprny instolis tawn sod in home yatds. The companys most recent monthly contribution format income stotement fallows Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impoct on net operating income of a 6% increase in unit sales: 3. Construct a new contribution format income statement for the company assuming a 6% increase in unit sales. Complete this question by entering your answers in the tabs below Using the degree of operating leverage, estimate the impact on net operating income of o 6% increase in unit sales. (hound vour iatermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (i.f. 12.34 should he entered as 12.447. Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impoct on net operating income of a 6% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 6% increase in unit sales. Complete this question by entering your answers in the tabs below Construct a new contribubion format income statement for the company assuming a 6% increase in unit sales Fill in the missing amounts in each of the elght case situations below. Each case is independent of the others a. Assume that only one product is being soid in each of the four following case situotions: Required: b. Assume that more than one product is being sold in each of the four following case situations: Complete this question by entering your answers in the tabs below. Assume that only one product is being sold in each of the four follawing case situations: (Loss amaunts should be indicated by a minus sign.) Maller Company's contnbution format income statement for the most recent month is shown below Required: (Consider each cose independently): 2. What is the revised net operating income if the seling price decreases by $1,40 per unit and the number of units sold increases by 1. What is the revised net operating income if unit sales increase by 12% ? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $10.000, and 23% ? A. What is the revised net operating income if the selling price per unt increases by 20% variable expenses increase by 30 cents per the number of units sold decreases by 3% ? unit, and the number of units sold decreases by 6% ? Lindon Company is the exclusive distibutor for an automotive product that selis for $24.00 per unit and has . CM ratio of 30. The company's fixed expenses are $118,800 per yeot. The company plans to sell 18,100 units this yeat. 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.) Required: 2. What is the break-even point in unit sales and in dollat sales? 3. What amount of unit sales and doltar sales is required to attoin a target protit of $46,800 per ye os? 4. Assume that by using a more efficient shipper, the company is abie to reduce its voriable expenses by $2.40 per unit What is the comdant's new breakeven point in unit sales and in dollar sales? What doliar sales is requiled to attain a target profit of 546,800 ? Magic Realm, Incorporated; has developed a new fontasy board game. The compony sold 35,600 games last year ot a selling price of $65 per game. Fixed expenses associated with the game total $623,000 per year, and variable expenses are $45 per game Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor Required: Required: 2. Management is confident that the company can sell 42,720 games next year (an increase of 7120 games, or 20\%, over last year) 1-b. Compute the degree of opetating loverage. Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answee) Complete this question by entering your answers in the tabs below. Prepare a contribution format income statement for the game last year. Magic Realm. Incorporated, has developed a new fantasy board game. The compony sold 35,600 games last year at a seling price of $65 per game. Fixed expenses associated with the game total $623,000 per year, and variable expenses are $45 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor: Required: 1.a. Prepare a contribution format income statement for the game last year. 2. Management is confident that the company can sell 42.720 games next year (on increase of 7120 games, or 20 , over last yean) 1.b. Compute the degree of operating leverage. Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer) Complete this question by entering your answers in the tabs below. Compute the degree of operating leverage: Magic Re aim, incorporated, has developed a new fantasy board game. Tho company sold 35,600 games last year at a selling price of $65 per game. Fixed expenses associated with the game total $623,000 per year, and variable expenses are $45 per game Production of the game is entrusted to a printing contractot Variable expenses consist mostiy of payments to this contractor Required: Ta. Prepare o contribution format income statement for the game last year. 1-b. Compute the degree of operating loverago. 2. Management is confident that the company can sell 42,720 games next yeor (an increase of 7,120 games, or 20%, over last year) Given this assumption: a. What is the expected percentoge increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement, use the degree of operating leverage to compute your answer.) Complete this question by entering your answers in the tabs below. Management is confident that the company can sell 42,720 games next year (an increase of 7,120.9ame5, or 20%, over iast year). Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)