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 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,100 and monthly sales increase by $15,500? 1-b. Should the advertising budget be increased?
Homework Answers
| 1-a. | Increase ( Decrease ) in net operating income = ( Increase in sales * Contribution margin ratio ) - Increase in advertising budget = ( 15500 * 45% ) - 8100 | (1125) |
| Net operating income | Decreases | by | 1125 |
| 1-b. | Should the advertising budget be increased? |
| Answer : No | |
| Reason : As increasing the advertising budget will result in decrease in net operating income by 1125 |
Add Answer to:
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...
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...
Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are...
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...
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. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,800 and monthly sales increase by $24,000? 1-b. Should the advertising budget be increased?
Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent of Per...
Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent of Per Unit Sales $ 80 1eex 5265 $ 28 3 5% Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. Exercise 5-5 Part 1 advertising budget increases by $10,000 and Required: 1-a. How much will net operating income increase (decrease) per monthly sales increase by $25,000? 1-6. Should the advertising budget be increased?
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...
Data for Hermann Corporation are shown below: Percent of Sales 100% Selling price Variable expenses Contribution...
Data for Hermann Corporation are shown below: Percent of Sales 100% Selling price Variable expenses Contribution margin Per Unit $ 60 39 $ 21 65 35% Fixed expenses are $72,000 per month and the company is selling 4,200 units per month. Exercise 2-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600 and monthly sales increase by $23,000? 1-b. Should the advertising budget be increased? Complete...
Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5-4) [The...
Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5-4) [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: 100% Selling price Variable expenses Contribution s 80 44 s 36 Fixed expenses are $76,000 per month and the company is selling 2,500 units per month. Exercise 5-5 Part1 Required -a. The marketing manager argues that a $8,100 increase in the monthly advertising budget would increase monthly sales by...
Data for Hermann Corporation are shown below: Percent of Sales 1005 Selling price Variable expenses Contribution...
Data for Hermann Corporation are shown below: Percent of Sales 1005 Selling price Variable expenses Contribution margin Per Unit $110 77 $ 33 301 Fixed expenses are $82,000 per month and the company is selling 3,500 units per month Exercise 2-5 (Algo) Part 1 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? -b. Should the advertising budget be increased? Complete this question...
Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit 140...
Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit 140 91 $ 49 Percent of Sales 100% 65 35% Fixed expenses are $88,000 per month and the company is selling 3,000 units per month Exercise 6-5 Part 1 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 $21,500? 1-b. Should the advertising budget be increased? Complete this question...
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 Percent of Per Unit Sales $ 80 1eex 5265 $ 28 3 5% Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. Exercise 5-5 Part 1 advertising budget increases by $10,000 and Required: 1-a. How much will net operating income increase (decrease) per monthly sales increase by $25,000? 1-6. Should the advertising budget be increased?
Data for Hermann Corporation are shown below: Percent of Sales 100% Selling price Variable expenses Contribution margin Per Unit $ 60 39 $ 21 65 35% Fixed expenses are $72,000 per month and the company is selling 4,200 units per month. Exercise 2-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600 and monthly sales increase by $23,000? 1-b. Should the advertising budget be increased? Complete...
Required information Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5-4) [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: 100% Selling price Variable expenses Contribution s 80 44 s 36 Fixed expenses are $76,000 per month and the company is selling 2,500 units per month. Exercise 5-5 Part1 Required -a. The marketing manager argues that a $8,100 increase in the monthly advertising budget would increase monthly sales by...
Data for Hermann Corporation are shown below: Percent of Sales 1005 Selling price Variable expenses Contribution margin Per Unit $110 77 $ 33 301 Fixed expenses are $82,000 per month and the company is selling 3,500 units per month Exercise 2-5 (Algo) Part 1 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? -b. Should the advertising budget be increased? Complete this question...
Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit 140 91 $ 49 Percent of Sales 100% 65 35% Fixed expenses are $88,000 per month and the company is selling 3,000 units per month Exercise 6-5 Part 1 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 $21,500? 1-b. Should the advertising budget be increased? Complete this question...
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...
Most questions answered within 3 hours.
-
Use the following set of observed frequencies to test the
independence of the two variables. Variable...
asked 16 minutes ago -
Two kg of ice at -15 °C are placed in a 2 kg bath of water...
asked 16 minutes ago -
Describe the following with suitable
examples.
1- Security Policy Heterogeneity
2-Security Model Heterogeneity
3-Security Mechanism Heterogeneity...
asked 17 minutes ago -
Please Identify the Term "Determinism" in Psychology
asked 16 minutes ago -
The table below represents the number of republicans, democrats
and independent voting on a specific issue....
asked 21 minutes ago -
List and compare different forms of passive transport and active
transport.
asked 29 minutes ago -
In Netherland Dwarf rabbits, dwarf size is determined by allele
N, and normal-size by allele n....
asked 35 minutes ago -
During Heaton Company’s first two years of operations, it
reported absorption costing net operating income as...
asked 50 minutes ago -
Consider testing the
hypotheses:
H0: p = 0.56
H1: p > 0.56
where p is
the...
asked 53 minutes ago -
In a two-factor analysis of variance a main effect is defined as
____.
a. the unique...
asked 1 hour ago -
A bank's loan officer rates applicants for credit. The ratings
are normally distributed with a mean...
asked 1 hour ago -
Fill in the following information for Adipic Acid: molecular
weight, g or ml, mole, melting point,...
asked 1 hour ago