Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per Unit $ 60 39 $ 21 Percent of Sales 100% 65 35% Selling price Variable expenses Contribution margin Fixed expenses are $72,000 per month and the company is selling 4,200 units per month.
Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per Unit $ 60 39 $ 21 Percent of Sales 100% 65 35% Selling price Variable expenses Contribution margin Fixed expenses are $72,000 per month and the company is selling 4,200 units per month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please do not give solution in image format thanku
![Required information
[The following information applies to the questions displayed below.]
Data for Hermann Corporation are shown below:
Per Unit
$ 60
39
$ 21
Percent
of Sales
100%
65
35%
Selling price
Variable expenses
Contribution margin
Fixed expenses are $72,000 per month and the company is selling 4,200 units per month.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4cf9133d-2dd4-45f6-b833-be7167a81438%2F027a6179-85c7-4cca-8ceb-949bacd55527%2Fslbqydy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Data for Hermann Corporation are shown below:
Per Unit
$ 60
39
$ 21
Percent
of Sales
100%
65
35%
Selling price
Variable expenses
Contribution margin
Fixed expenses are $72,000 per month and the company is selling 4,200 units per month.
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Reg 1A
Req 18
How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600,
the monthly sales volume increases by 100 units, and the total monthly sales increase by $6,000? (Do not round intermediate
calculations.)
Net operating income
Reg 2A
Reg 28
by
Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-
quality components that increase the variable expense by $4 per unit and increase unit sales by 25%.
Net operating income
by
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