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Determine how much net operating income increase per month

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Reference no: EM132593815

Data for Hermann Corporation are shown below:

                            Per Unit                  Percent of Sales

Selling price         $135                       100%

Variable expenses  81                             60

Contribution margin $54                              40%

Fixed expenses are $87,000 per month and the company is selling 2,900 units per month.

Required:

Question 1: How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,200 and monthly sales increase by $20,250?

Reference no: EM132593815

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