Required information Exercise 2-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume...
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Required information Exercise 2-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO2-4] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. Exercise 2-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000 and monthly sales increase by $20,000 ? 1-b. Should the advertising budget be increased? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000 and monthly sales increase by $20,000 ? (Round any unit calculations up to the nearest whole unit.)
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