1) Incremental profit (loss) = Incremental revenue-Incremental cost = (20500*40%)-9100 = -900
1b) No advertising should not be increased
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below....
Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 130 78 Percent of Sales 100% 60 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 $20,500? 1-b. Should the advertising...
Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 140 91 Percent of Sales 100% 65 35% $ 49 Fixed expenses are $88,000 per month and the company is selling 3,000 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,300 and monthly sales increase by $21,000? 1-b. Should...
! Required information [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 85 51 $ 34 Percent of Sales 100% 60 40 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 and monthly sales increase by $15,300? 1-b....
newconnect.mheducation.com Test # 2 Saved Required information The following information applies to the questions displayed below, Data for Hermann Corporation are shown below: Percent of Sales 100% 60 Per Unit $130 Selling price Variable expenses 78 $52 Contribution margin 40% Fixed expenses are $86,000 per month and the company is selling 2,800 units per montha Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100 anc monthly sales increase by...
Required information (The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent Per Unit of Sales $ 90 1005 63 70 $ 27 30% Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Required: 1-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,...
Required information The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Per Unit $ 55 Percent of Sales 100% Selling price Variable expenses Contribution margin $ 22 40% Fixed expenses are $71,000 per month and the company is selling 4,100 units per month. Required 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,500 and monthly sales increase by $22,500? 1-b. Should the advertising...
! Required information The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 85 51 $ 34 Percent of Sales 100% 60 404 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 and monthly sales increase by $15,300? 1-b....
Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per Unit $ 110 Percent of Sales 100% Selling price Variable expenses Contribution margin 77 70 in $ 33 30% Fixed expenses are $82,000 per month and the company is selling 3,500 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,700 and monthly sales increase by $18,500? 1-b....
Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 130 100 % Variable expenses 78 60 Contribution margin $ 52 40 % Fixed expenses are $86,000 per month and the company is selling 2,800 units per month. Garrison 16e Rechecks 2017-05-02 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100 and monthly...
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 $135 100% 60 81 Contribution margin $ 54 40% Fixed expenses are $87,000 per month and the company is selling 2,900 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,200 and monthly sales increase by $21,000? 1-b. Should the...