2 ! s 2 of 2 00:43:28 eBook Saved Required information Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO5-4] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent of Per Unit $ 85 Sales 51 100% 60 $ 34 40% Fixed expenses are $77,000 per month and the company is selling 2,600 units per month. Hint Exercise 5-5 (Algo) Part 2 Print oferences liday Cream Help Save & E 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. Req 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 $5 per unit and increase unit sales by 20%. Net operating income increases by Next > Ch