Percent ofPer UnitSales$ 125Selling priceVariable expenses100%8064Contribution margin$ 4536%Fixed expenses are $85,000 per month and the company is selling 2,700 units per month.Required:1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000, themonthly sales volume increases by 100 units, and the total monthly sales increase by $12,500?1-b. Should the advertising budget be increased?Answer is not complete.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 $9,000,the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,500? (Do not roundintermediate calculations.)Net operating incomeby< Req 1AReq 1B >

Calculation of Increase in Net Operating Income Increase in Net Operating Income = Additional…

Percent of Sales Per Unit $ 125 Selling price Variable expenses 100% 80 64 Contribution margin $ 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. equired: a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000, the onthly sales volume increases by 100 units, and the total monthly sales increase by $12,500? b. Should the advertising budget be increased?

Percent of Sales Per Unit $ 125 Selling price Variable expenses 100% 80 64 Contribution margin $ 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. equired: a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000, the onthly sales volume increases by 100 units, and the total monthly sales increase by $12,500? b. Should the advertising budget be increased?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3PA

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Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Fixed expenses are $74,000 per month and the company is selling 4,400 units per month. Req 1A Per Unit $ 70 49 $ 21 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,800, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,000? 1-b. Should the advertising budget be increased? Req 1B Complete this question by entering your answers in the tabs below. Percent of Sales Net operating income 100% 70 30% by How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,800, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,000? (Do not round intermediate calculations.)
Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price Variable expenses $ 130 100% 78 60 Contribution margin $ 52 40% Fixed expenses are $86,000 per month and the company is selling 2,800 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100 and monthly sales increase by $19,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 18 How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100 and monthly sales increase by $19,500? (Round any unit calculations up to the nearest whole unit.) Net operating income by
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Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 125 100% Variable expenses 80 64 Contribution margin $ 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. Required: 1-a. How much will net operating income increase or decrease per month if the monthly advertising budget increases by $9,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,500? 1-b. Should the advertising budget be increased?
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 90 63 $ 27 Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Req 1A Percent of Sales Required: I-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000? 1-b. Should the advertising budget be increased? Req 1B 100% 70 30% Complete this question by entering your answers in the tabs below. by How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,000? Net operating income
Need explanationChanges in Variable Costs, Fixed Costs, Selling Price, and Volume 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. 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,100, the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,000? 1-b. Should the advertising budget be increased?