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The following information applies to the questions displayed below. Data for Hermann Corporation are shown below: Selling price Variable expenses Per Unit $ 60 Percent

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The following information applies to the questions displayed below. Data for Hermann Corporation are shown below: Selling price Variable expenses Per Unit $ 60 Percent of Sales 100% 65% 39 Contribution margin $ 21 35% Fixed expenses are $72,000 per month and the company is selling 4,200 units per month. value 11.11 points Required: 1-a. The marketing manager argues that a $9.600 increase in the monthly advertising budget would increase monthly sales by $23,000. Calculate the increase or decrease in net operating income. Net operating income by 2-a. Refer to the original data. Management is considering using higher-quality components that would increase the variable expense by $4 per unit. The marketing manager believes that the higher-quality product would increase sales by 25% per month. Calculate the change in total contribution margin. Total contribution margin by

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