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Business, 29.01.2020 00:48 jaylene125

Data for hermann corporation are shown below:

per unit percent of sales
selling price $90 100%
variable expenses 63 70
contribution margin $27 30%

fixed expenses are $30,000 per month and the company is selling 2,000 units per month.
required:
(1) the marketing manager argues that a $5,000 increase in the monthly advertising budget would increase monthly sites by $9,000.
should the advertising budget be increased?
(2) refer to the original data. how much will net operating income increase per month if the company uses higher-quality components that increase the variable expense by $2 per unit and increase unit sales by 10%?

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Data for hermann corporation are shown below:

per unit percent of sales
selling p...
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