Please help me. Thankyou. Data for Hermann Corporation are shown below:Per Unit Percent of Sales$90100%Selling priceVariable expenses 63Contribution margin $27Fixed expenses are $78,000 per month and the company isselling 3,500 units per month.7030%Required:1-a. How much will net operating income increase (decrease)per month if the monthly advertising budget increases by$8,300, the monthly sales volume increases by 100 units, andthe total monthly sales increase by $9,000?1-b. Should the advertising budget be increased?

Net operating income is income after deducting fixed cost and variable cost.If net operating income…

Data for Hermann Corporation are shown below: Per Unit Percent of Sales $90 100% Selling price Variable expenses 63 Contribution margin $27 Fixed expenses are $78,000 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 by $8,300, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000? 1-b. Should the advertising budget be increased? 70 30%

Data for Hermann Corporation are shown below: Per Unit Percent of Sales $90 100% Selling price Variable expenses 63 Contribution margin $27 Fixed expenses are $78,000 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 by $8,300, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000? 1-b. Should the advertising budget be increased? 70 30%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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