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Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO6-4] [The following information applies to the questions displayed below] Data for Hermann Corporation are shown below. Per Unit $ 60 39 5:21 Percent of Sales 100% 65 Selling price Variable expenses Contribution margin 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? Complete this question by entering your answers in the tabs below. Red 2A Req 28 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%. Net operating income 4 Reg 2A Req 28 >
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