Data for Hermann Corporation are shown below: Per...
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Accounting
Data for Hermann Corporation are shown below:
| Per Unit | Percent of Sales | ||||||
| Selling price | $ | 80 | 100 | % | |||
| Variable expenses | 44 | 55 | |||||
| Contribution margin | $ | 36 | 45 | % | |||
Fixed expenses are $76,000 per month and the company is selling 2,500 units per month.
rev: 06_04_2020_QC_CS-205709, 06_18_2020_QC_CS-216765, 07_14_2020_QC_CS-216765
Required:
1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,100 and monthly sales increase by $14,400?
1-b. Should the advertising budget be increased?
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