Please help me Data for Hermann Corporation are shown below:Selling priceVariable expensesContribution marginPer Unit$ 8551$34Exercise 5-5 Part 1Percent ofSales100%6040%Fixed expenses are $77,000 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 $8,200 andmonthly sales increase by $15,300?1-b. Should the advertising budget be increased?

Under variable costing or marginal costing, net operating income is calculated by reducing fixed…

Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $85 51 $ 34 ercise 5-5 Part 1 Percent of Sales 100% 60 40% Fixed expenses are $77,000 per month and the company is selling 2,600 units per month. quired: How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,200 and nthly sales increase by $15,300? Should the advertising budget be increased?

Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $85 51 $ 34 ercise 5-5 Part 1 Percent of Sales 100% 60 40% Fixed expenses are $77,000 per month and the company is selling 2,600 units per month. quired: How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,200 and nthly sales increase by $15,300? Should the advertising budget be increased?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month...

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Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month of April. Wallace expects sales volume to increase by 5% in May. What are the degree of operating leverage and the expected percent change in income for Wallace Industries? 0.42 and 2.2% 0.42and5% 2.4andl2% 2.Sandl3%
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