Required informationExercise 5-7 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Unit Sales [LO5-7][The following information applies to the questions displayed below]Data for Hermann Corporation are shown below:Selling priceVariable expensesContribution marginPer Unit$ 85Percent ofSales51100%60$ 3440%Fixed expenses are $77,000 per month and the company is selling 2,600 units per month.Exercise 5-7 (Algo) Part 1Required:1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,200, themonthly sales volume increases by 100 units, and the total monthly sales increase by $8,500?1-b. Should the advertising budget be increased?Complete this question by entering your answers in the tabs below.Required 1A Required 1BHow much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,200,the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,500?Note: Do not round intermediate calculations.Net operating incomeby< Required 1ARequired 1B >

Net operating income is the difference between contribution margin and fixed costs. Contribution…

Answered: ling price iable expenses tribution…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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D% A company has three products-Beta, Chi, and Delta-that emerge from a joint process. The selling prices and amount of output for each product at the split-off point are as follows: Amount of Selling Price Output 14,000 pounds 18,000 pounds 19,000 pounds apse Product Beta $33 per pound points Chi $29 per pound Delta $24 per pound 8 00:36:54 Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Additional Selling Price $37 per pound $34 per pound $30 per pound Product Processing Costs $65,000 Beta Chi $75,500 Delta $70,000 What is financial advantage (disadvantage) of further processing Product Chi?
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MSRP $5.39 $4.99 Volume Discount 35% 35% Unit Cost $1.49 $1.49 Promotional Allowance 15% 20% Advertising and Promotion $25 Million $20 Million Allocated Fixed Costs $68 M $12 M Projected Unit Sales 115M 10M A firm has an existing product with a combined advertising and promotion budget of $25.0 million and with projected sales of 115 million units. They are launching a new product with a budget of $20.0 million and estimated sales of 10 million units in the first year. The sales force expense of $10 million has been allocated equally between products; 90% of the plant overhead has been allocated to the existing product, and 10%, to the new product. Additional values for each product are shown in the table above. 1. Production anticipates it will need to increase capacity to 140 million units, adding $10.0 million to annual fixed costs. If the product allocation of the plant cost is also changed to 80%/20%, what is the impact on break-even units? Please use the chart…
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Multiple Choice$80,830$72,167$38,970$46,090
-/1 Question 1 rences View Policies borations Current Attempt in Progress PLUS Support Jackson Manufacturing is introducing a new product with a unit selling price of $12.50. The product required an investment of $500,000, and the company requires a 20 % ROI. Projected sales 100,000 units. Compute the target cost per unit. Central e 365 es O $14.50 a O $15.50 O $11.50 O $10 hp noll ins prt sc home delete 4 num backspace
Sales VC Complete the shaded cells below: Year 1 $32,960,000 13,440,000 Year 2 Year 3 Year 4 $54,590,000 22,260,000 $44,805,000 18,270,000 $40,170,000 Year 5 $27,810,000 16,380,000 11,340,000 Fixed costs 5,300,000 5,300,000 5,300,000 5,300,000 5,300,000 Dep EBT 5,501,650 $8,718,350 9,428,650 6,733,650 4,808,650 3,438,050 $17,601,350 $14,501,350 $13,681,350 $7,731,950 Tax NI $6,800,313 +Dep OCF 1,918,037 5,501,650 $12,301,963 3,872,297 $13,729,053 5,501,650 $19,230,703 3,190,297 3,009,897 1,701,029 $11,311,053 $10,671,453 $6,030,921 5,501,650 $16,812,703 5,501,650 $16,173,103 5,501,650 $11,532,571 NWC Beg End $0 0 NWC CF $6,592,000 $10,918,000 $8,961,000 $8,034,000 $5,562,000 Net CF Salvage BV of equipment Taxes Salvage CF Net CF Time 0 2 3 5 12345
MANUFACTORING Investigate % A packaging employee making $18 per hour can package 90 items during that hour. The direct material cost is $1.20 per item. What is the total direct cost of 1 item? A. $1.20 C. $1.40 o' F5 ^ F6 & F7 S F8 B. $0.20 a D. $1.00 DELL F9 I= ACC prtsc F10 home F11 end F12
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ling price iable expenses tribution margin Per Unit Percent of Sales $ 85 51 100% 60 $ 34 40% expenses are $77,000 per month and the company is sellin 5-7 (Algo) Part 1