ling price iable expenses tribution margin Per Unit Percent of Sales $ 85 51 100% 60 $ 34 40% expenses are $77,000 per month and the company is sellin 5-7 (Algo) Part 1
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![Required information
Exercise 5-7 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Unit Sales [LO5-7]
[The following information applies to the questions displayed below]
Data for Hermann Corporation are shown below:
Selling price
Variable expenses
Contribution margin
Per Unit
$ 85
Percent of
Sales
51
100%
60
$ 34
40%
Fixed expenses are $77,000 per month and the company is selling 2,600 units per month.
Exercise 5-7 (Algo) Part 1
Required:
1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,200, the
monthly sales volume increases by 100 units, and the total monthly sales increase by $8,500?
1-b. Should the advertising budget be increased?
Complete this question by entering your answers in the tabs below.
Required 1A Required 1B
How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,200,
the monthly sales volume increases by 100 units, and the total monthly sales increase by $8,500?
Note: Do not round intermediate calculations.
Net operating income
by
< Required 1A
Required 1B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b161e8b-9c29-47c0-89eb-99c7886482dc%2F28bd3a53-eae6-40e3-bcaa-6b7b2197f678%2Fq4ptza_processed.png&w=3840&q=75)
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- Required information Exercise 5-7 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Unit Sales [LO5-7] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 100 61 $39 Exercise 5-7 (Algo) Part 1 Percent of Sales 100% 61 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500, the monthly sales volume increases by 100 units, and the total monthly sales increase by $10,000? 1-b. Should the advertising budget be increased?! Required information Exercise 5-5 (Algo) 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: Selling price Variable expenses Contribution margin Per Unit $ 60 39 $ 21 Exercise 5-5 (Algo) Part 2 Percent of Sales 100% 65 35% Fixed expenses are $72,000 per month and the company is selling 4,200 units per month. 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 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used?Required information Exercise 5-5 (Algo) 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: Per Unit $ 140 91 $ 49 Exercise 5-5 (Algo) Part 1 Percent of Sales Selling price Variable expenses Contribution margin Fixed expenses are $88,000 per month and the company is selling 3,000 units per month. 100% 65 35% Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,300, the monthly sales volume increases by 100 units, and the total monthly sales increase by $14,000? 1-b. Should the advertising budget be increased?
- ! Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [L06-4] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Sales 100% Per Unit Selling price Variable expenses $ 140 91 65 Contribution margin $ 49 35% Fixed expenses are $88,000 per month and the company is selling 3,000 units per month.Exercise 5-5 (Algo) 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: Per Unit Percent of Sales Selling price $ 105 100% Variable expenses 63 60 Contribution margin $ 42 40% Fixed expenses are $81,000 per month and the company is selling 3,800 units per month. Exercise 5-5 (Algo) 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 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used?Exercise 5-7 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Unit Sales [LO5-7] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 85 51 $ 34 Exercise 5-7 (Algo) Part 2 Percent of Sales 100% 60 40% Fixed expenses are $77,000 per month and the company is selling 2,600 units per month. 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 $5 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used?
- Sales (18,00e units) Variable expenses Contribution margin Fixed expenses $ 368,008 144,e00 216,eee 188,eee $ 36,000 Operating incone Required: Answer each question Independently based on the original data: 1. What is the product's CM ratio? 2 Use the CM ratio to determine the break-even polnt in sales dollars.of 2godo subject-Accounting The following information pertains to Venus Company's cost-volume-profit relationships: Break-even point in units sold = 1,000; Variable costs per unit = GHC500; Total fixed costs = GH¢150,000. How much will be contributed to profit before taxes by the 1,001st unit sold?
- Required information Exercise 5-8 (Static) Prepare a Cost-Volume-Profit (CVP) Graph [LO5-8] [The following information applies to the questions displayed below.] Karlik Enterprises distributes a single product whose selling price is $24 per unit and whose variable expense is $18 per unit. The company's monthly fixed expense is $24,000. Exercise 5-8 (Static) Part 1 Required: 1. Prepare a cost-volume-profit graph for the company using sales volumes of zero units and 8,000 units. Note: Use the line tool to draw three lines (Total Sales Revenue, Fixed Expense, Total Expense). Each line should only contain the two endpoints. For your graph to grade correctly, you must enter the exact coordinates. Once all points have been plotted, click on the line (not individual points) and a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed. To remove a line from the graph, click on the line and select delete option. $200,000 Dollars $150,000 $100,000 $50,000…ALTHEXA companyThis problem contains 4 questions.ALTHEXA company has the following costs and revenue data for the current year: Selling price per unit P 10.50 Variable costs per unit 5.04 Total fixed costs P513,240 Operating income/(loss)before tax (10,920) Income tax rate 40% Net income or loss after tax if company has P1,155,000 in sales revenue.Required information [The following information applies to the questions displayed below.] Information for Pueblo Company follows: Sales Revenue Less: Total Variable Cost Contribution Margin Product A $ 51,000 $ 11,500 $ 39,500 Target sales Product B $ 68,000 $ 30,150 $ 37,850 Required: The total fixed costs are $30,000. Determine target sales needed to earn a $26,000 target profit. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.