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2 Required information The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin

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2 Required information The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent Per Unit of Sales $90 100 63 70 $ 27 301 Fixed expenses are $30,000 per month and the company is selling 2,000 units per month 2-a. Refer to the original data. However, in the text it is provided as "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? Complete this question by entering your answers in the tabs below. Reg 2 Reg 28 - . Required information 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Reg 2A Reg 2B Refer to the original data. However, in the text it is provided as "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%. Net operating income increases by REGRA Roq 28 > 2-a Refer to the original data. However, in the text it is provided as "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? Complete this question by entering your answers in the tabs below. Red 2A Reg 2B Should the higher quality components be used? Yos NO

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