2a:

2b:

Required information [The following information applies to the questions displayed below. Data for Hermann Corporation are shown below: Percent of Per Unit $55 Sales Selling price Variable expenses 100% 33 60 Contribution margin S 22 408 Fixed expenses are $71,000 per month and the company is selling 4,100 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