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Help me. urgent. thanks You can skip problem 1-a if you want The following information applies to the questions displayed below.] Data for Herron…

by | Jan 11, 2025 | Posted Questions

Help me.pls. urgent. thanks You can skip problem 1-a if you want The following information applies to the questions displayed below.] Data for Herron Corporation are shown below: Per Unit Percent of Sales Selling price $ 120 100% Variable expenses 78 65% Contribution margin $ 42 35% Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. 1-a. The marketing manager believes that an $8,900 increase in the monthly advertising budget would increase monthly sales by $19,500. Calculate the increase or decrease in net operating income. 1-b. Should the advertising budget be increased? 2. -a Refer to the original data. Management is considering using higher-quality components that would increase the variable cost by $5 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 (increase/decrease) by ( ) 2-b. Should the higher-quality components be used? Attachment 1 Attachment 2 ATTACHMENT PREVIEW Download attachment 6-1.png ATTACHMENT PREVIEW Download attachment 6-2.png

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