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12 Required information Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] (The following information applies to the questions
12 Required information 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. Percent Selling price Variable expenses Contribution margin Per Unit of Sales $120 78 $42 100% 65 358 Fixed expenses ace $84,000 per month and the company is selling 2,600 units per month. . Exercise 6-5 (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 $5 per unit and increase unit sales by 20% 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req2A 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 $5 per unit and increase unit sales by 20%. at operating income Req 201>
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