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12 Required information [The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Der Unit $ 60 39 $

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12 Required information [The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Der Unit $ 60 39 $ 21 Selling price Variable expenses Contribution margin Percent of Sales 1009 65 351 13:01 -ok Fixed expenses are $72,000 per month and the company is seling 4.200 units per month ht ences 2-. 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 soles by 25% 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Reg 2A Reg 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% Fixed expenses are $72,000 per month and the company is selling 4,200 units per month 2. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-qua mponents that increase the variable expense by $4 per unit and increase unit sales by 25%. b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Reg 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 by RoG 2 Req 2B> 84 xpenses 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. Reg 2A Reg 28 Should the higher-quality components be used? OYes ONO

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