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odonary app you you Data for Hermann Corporation are shown below: Percent Per Unit of Sales $ 120 100% 78 65 $ 42 35% Selling price Variable expenses Contribution margin Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Required: M-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8.900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,000? 1-b. Should the advertising budget be increased?

odonary app you you Data for Hermann Corporation are shown below: Percent Per Unit of Sales $ 120 100% 78 65 $ 42 35% Selling price Variable expenses Contribution margin Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Required: M-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8.900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,000? 1-b. Should the advertising budget be increased?

FINANCIAL ACCOUNTING
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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my v p ne quoun niyo volum Data for Hermann Corporation are shown below: Percent Per Unit of Sales $ 120 100% 78 65 $ 42 35% Selling price Variable expenses Contribution margin Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8.900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,000? 1-b. Should the advertising budget be increased? Req 1A Complete this question by entering your answers in the tabs below. Answer is complete but not entirely correct. Reg 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,000? (Do not round intermediate calculations.) Not operating income decreases by 2,075
Transcribed Image Text:my v p ne quoun niyo volum Data for Hermann Corporation are shown below: Percent Per Unit of Sales $ 120 100% 78 65 $ 42 35% Selling price Variable expenses Contribution margin Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8.900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,000? 1-b. Should the advertising budget be increased? Req 1A Complete this question by entering your answers in the tabs below. Answer is complete but not entirely correct. Reg 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,000? (Do not round intermediate calculations.) Not operating income decreases by 2,075
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