[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per

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The Following Information Applies To The Questions Displayed Below Data For Hermann Corporation Are Shown Below Per 1 (324.25 KiB) Viewed 15 times

[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per Unit $95 Percent of Sales 100% Selling price Variable expenses 57 60 Contribution margin $38 40% Fixed expenses are $79,000 per month and the company is selling 3,600 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 $3 per unit and increase unit sales by 10%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 2B 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 $3 per unit and increase unit sales by 10%. by Net operating income