Required information[The following information applies to the questions displayed below.]Data for Hermann Corporation are shown below:Percent ofPer UnitSalesSelling priceVariable expenses$ 60100%3965Contribution margin$ 2135%Fixed expenses are $72,000 per month and the company is selling 4,200 units per month.Required:1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600, themonthly sales volume increases by 100 units, and the total monthly sales increase by $6,000?1-b. Should the advertising budget be increased?Complete this question by entering your answers in the tabs below.Req 1AReq 1BHow 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 intermediatecalculations.)Net operating incomedecreasesby

Under Marginal costing system Operating income = Selling price less variable cost - Fixed cost We…

Answered: Percent of Per Unit Sales $ 60 Selling…

Percent of Per Unit Sales $ 60 Selling price Variable expenses 1008 39 65 Contribution margin $ 21 35% Fixed expenses are $72,000 per month and the company is selling 4,200 units per month.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...

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