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[ The following information applies to the questions displayed below. ] Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price
The following information applies to the questions displayed below.
Data for Hermann Corporation are shown below:
Per Unit Percent of Sales
Selling price $
Variable expenses
Contribution margin $
Fixed expenses are $ per month and the company is selling units per month.
Required:
a How much will net operating income increase decrease per month if the monthly advertising budget increases by $ the monthly sales volume increases by units, and the total monthly sales increase by $
b Should the advertising budget be increased?
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