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...
Information for Drone On Limited is shown below: Percentage of Sales Per Unit Selling price $1,000 100% Variable expenses _800 80% 20% Contribution margin $ 200 Total fixed expenses are $100,000 per month, and Drone On Limited is selling 1,000 drones per month. Required: 1. The marketing manager argues that a $5,000 increase in the monthly budget to prepare webinars would increase monthly sales by 50 drones. Should the webinar budget be increased? 2. Refer to the original data. Management...
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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...
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: 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...
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[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent Per Unit of Sales $ 105 Selling price Variable expenses 100% 63 60% $ 42 Contribution margin 40% Fixed expenses are $81,000 per month and the company is selling 3,800 units per...
Percent of Selling price Variable expenses Contribution margin Per Unit $150 60 $ 90 Sales 1008 40% 60% The company is currently selling 5,200 units per month. Fixed expenses are $208,000 per month. The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice decrease of $6,900 decrease of $6,600...
20.20 UNLINE Exercise 3-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO3-41 The following information applies to the questions displayed below. Data for Hermann Corporation are shown below: Percent Per of Unit Sales Selling price $140 100% Variable 91 65% expenses Contributions 49 35% margin Fixed expenses are $85,000 per month and the company is selling 3,000 units per month References Section Break Exercise 3-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO3-4) 3...