Question & Answer: Data for Hermann Corporation are shown below: Fixed expenses are $76,000 per month and the company is…..

Who said that learning must be a struggle?. Enjoy stress-free learning today!
Calculate your order
Pages (275 words)
Standard price: $0.00
So much stress and so little time? Our premium writers got you covered.
So much stress and so little time? Our premium writers got you covered.

[The following Information applles to the questions displayed below Data for Hermann Corporatlon are shown below: Percent of Sales 100% 55% Per Unit $ 80 Selling price Varlable expenses Contribution margin $ 36 45% Fixed expenses are $76,000 per month and the company is selling 2,500 units per month. Required: a. The marketing manager argues that a $8,100 increase in the monthly advertising budget would increase monthly sales by $15,500. Calculate the increase or decrease in net operating income. Net operating income by b. Refer to the original data. Management is considering using higher-quality components that would increase the variable expense by $4 per unit. The marketing manager believes that the higher-quality product would increase sales by 20% per month. Calculate the change in total contribution margin. Total contribution margin by

Data for Hermann Corporation are shown below: Fixed expenses are $76,000 per month and the company is selling 2.500 units per month. Required: a. The marketing manager argues that a $8, 100 increase in the monthly advertising budget would increase monthly sales by $15, 500. Calculate the increase or decrease in net operating income. b. Refer to the original data. Management is considering using higher-quality components that would increase the variable expense by $4 per unit. The marketing manager believes that the higher-quality product would increase sales by 20% per month. Calculate the change in total contribution margin.

Expert Answer

 

a.Increase in contribution=($15500*45%)=$6975

Less:increase in Fixed expenses=$8100

Hence net operating income would decrease by=$1125.

b.

Current contribution margin=(36*2500)=$90000

 

 

 

So much stress and so little time? We’ve got you covered. Get your paper proofread, edited or written from scratch within the tight deadline.

Client Reviews
4.9
Sitejabber
4.6
Trustpilot
4.8
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.
25+ Subjects
From Literature to Law – we have MA and Ph.D. experts in almost any academic discipline, for any task.
Any Paper
We can write, proofread, paraphrase, format, edit or rewrite your any paper, whether it’s a review or a term paper.
High Quality
All the papers we deliver to clients are based on credible sources and are quality-approved by our editors.
Fast Turnaround
Our writers can complete a standard essay for you within 1-3 hours and a part of a dissertation – in 2-5 days.
High Quality
All the papers we deliver to clients are based on credible sources and are quality-approved by our editors.
Next
Why Customers
Become Our Regulars
We put decades of writing experience to work for you and are passionate about helping you succeed. Let the figures tell our story!
10
Years in Writing Business
97%
Orders Delivered on Time
3,500+
Experts on Our Team
9/10
Report Better Grades
Thank you
Amazing. The writer delivered the draft earlier than expected, lol. I am pleased with the work; I hope my supervisor will like it too.
Excellent! Followed directions and completed a great paper
Great work!
Excellent. Thnk you
That's Why We Are Here 24/7
We are proud to say that we've scored a
96% customer satisfaction rate.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Get that paper done in two clicks.
Our premium writers got you covered!
Who said learning must be a struggle? Enjoy stress-free learning today.