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2 Homework Help Save & Exit Submit ! Required information [ The following information applies to the questions displayed below. ] Data for Hermann Corporation

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Data for Hermann Corporation are shown below:
\table[[,,\table[[Percent of],[Selling price]],Per Unit,Sales],[Variable expenses,$90,100%,,,],[Contribution margin,63,70,,,],[,$27,30%,,,]]
Fixed expenses are $30,000 per month and the company is selling 2,000 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 $2 per unit and increase unit sales by 10%.
2-b. Should the higher-quality components be used?
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Req 2A
Refer to the original data. How much will net operating income increase (decrease) per month if the company u : quality components that increase the variable expense by $2 per unit and increase unit sales by 10%.
Net operating income
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