Homework Answers
1) Increase income = (50*200)-5000 = 5000
Yes, Webinar budget should be increased
2) Present net income = Contribution margin-Fixed cost = (1000*200)-100000 = 100000
Proposed net income = (1000*1.15*120)-100000 = 38000
No, high quality components should not be used
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Information for Drone On Limited is shown below: Percentage of Sales Per Unit Selling price $1,000...
Question 3 (25 marks) Financial information obtained from Apple Limited is shown as below: Percent of sales Per uni...
Question 3 (25 marks) Financial information obtained from Apple Limited is shown as below: Percent of sales Per unit Selling price $120 100% Variable expenses 72 60% Contribution margin $ 48 Fixed expenses are $63,000 per month and the company is selling 5,000 units per month. Required: Use vertical incremental approach (each part: 1 column and 3 rows figures) 1. The marketing manager believes that $14,000 increase in the monthly advertising budget would increase monthly sales by $33,000. Should the...
Question 3 (25 marks) Financial information obtained from Apple Limited is shown as below: Percent of sales Per uni...
Question 3 (25 marks) Financial information obtained from Apple Limited is shown as below: Percent of sales Per unit Selling price $120 100% Variable expenses 72 60% Contribution margin $ 48 Fixed expenses are $63,000 per month and the company is selling 5,000 units per month. Required: Use vertical incremental approach (each part: 1 column and 3 rows figures) 1. The marketing manager believes that $14,000 increase in the monthly advertising budget would increase monthly sales by $33,000. Should the...
A Percent Per Unitof Sales Selling price Variable expenses $ 100 100% 61% 61 Contribution margin...
A
Percent Per Unitof Sales Selling price Variable expenses $ 100 100% 61% 61 Contribution margin $ 39 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. value: 9.09 points Required: 1-a. The marketing manager argues that a $8,500 increase in the monthly advertising budget increase monthly sales by $17,500. Calculate the increase or decrease in net operating in Net operating income 1-b. Should the advertising budget be increased? Yes O No Hints...
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below:...
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per Unit $ 125 Percent of Sales 100% 64% Selling price Variable expenses 80 Contribution margin $ 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. 3. value: 10.00 points Required: 1-a. The marketing manager argues that a $9,000 increase in the monthly advertising budget would increase monthly sales by $20,000. Calculate the increase or decrease...
Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 100...
Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 100 100 % Variable expenses 61 61 Contribution margin $ 39 39 % Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500 and monthly sales increase by $17,500? 1-b. Should the advertising budget be increased? 2-a. Refer to the original...
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below:...
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Sales 100% 61% Per Unit $ 100 61 Selling price Variable expenses ol Contribution margin $ 39 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. value: 10.00 points Required: 1-a. The marketing manager argues that a $8,500 increase in the monthly advertising budget would increase monthly sales by $17,500. Calculate the increase or decrease...
Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 80...
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. Garrison 16e Rechecks 2017-05-02 Exercise 5-5 Part 2 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $4...
Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 70...
Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 70 100 % Variable expenses 49 70 Contribution margin $ 21 30 % Fixed expenses are $74,000 per month and the company is selling 4,400 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $4 per unit and increase unit sales by 25%....
Data for Hermann Corporation are shown below: Percent of Sales 100% 64 Per Unit $125 80...
Data for Hermann Corporation are shown below: Percent of Sales 100% 64 Per Unit $125 80 $ 45 Selling price Variable expenses Contribution margin 366 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 and monthly sales increase by $20,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers...
Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $...
Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 80 52 Percent of Sales 100% 65 35% $ 28 Fixed expenses are $76,000 per month and the company is selling 4.600 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $5 per unit and increase unit sales by 25%. 2-b....
Question 3 (25 marks) Financial information obtained from Apple Limited is shown as below: Percent of sales Per unit Selling price $120 100% Variable expenses 72 60% Contribution margin $ 48 Fixed expenses are $63,000 per month and the company is selling 5,000 units per month. Required: Use vertical incremental approach (each part: 1 column and 3 rows figures) 1. The marketing manager believes that $14,000 increase in the monthly advertising budget would increase monthly sales by $33,000. Should the...
Question 3 (25 marks) Financial information obtained from Apple Limited is shown as below: Percent of sales Per unit Selling price $120 100% Variable expenses 72 60% Contribution margin $ 48 Fixed expenses are $63,000 per month and the company is selling 5,000 units per month. Required: Use vertical incremental approach (each part: 1 column and 3 rows figures) 1. The marketing manager believes that $14,000 increase in the monthly advertising budget would increase monthly sales by $33,000. Should the...
A
Percent Per Unitof Sales Selling price Variable expenses $ 100 100% 61% 61 Contribution margin $ 39 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. value: 9.09 points Required: 1-a. The marketing manager argues that a $8,500 increase in the monthly advertising budget increase monthly sales by $17,500. Calculate the increase or decrease in net operating in Net operating income 1-b. Should the advertising budget be increased? Yes O No Hints...
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per Unit $ 125 Percent of Sales 100% 64% Selling price Variable expenses 80 Contribution margin $ 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. 3. value: 10.00 points Required: 1-a. The marketing manager argues that a $9,000 increase in the monthly advertising budget would increase monthly sales by $20,000. Calculate the increase or decrease...
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Sales 100% 61% Per Unit $ 100 61 Selling price Variable expenses ol Contribution margin $ 39 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. value: 10.00 points Required: 1-a. The marketing manager argues that a $8,500 increase in the monthly advertising budget would increase monthly sales by $17,500. Calculate the increase or decrease...
Data for Hermann Corporation are shown below: Percent of Sales 100% 64 Per Unit $125 80 $ 45 Selling price Variable expenses Contribution margin 366 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 and monthly sales increase by $20,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers...
Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 80 52 Percent of Sales 100% 65 35% $ 28 Fixed expenses are $76,000 per month and the company is selling 4.600 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $5 per unit and increase unit sales by 25%. 2-b....
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