3 Part 2 of 2 142 ME Required information Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LOS-4] [The following information applies to the questions displayed below) Data for Hermann Corporation are shown below Selling price Variable expenses Contribution margin Per Unit 360 39 Percent of Sales 100% 65 8 21 355 Fixed expenses are $72.000 per month and the company is selling 4,200 units per month Exercise 5-5 (Algo) Part 2 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% 2-6. Should the higher-quality components be used? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 2A Req 28 < Prev 7 Next > Return to question 06 JUU per month and the company is selling 4,200 units per month. Part 2 of 21 Exercise 5-5 (Algo) Part 2 42 mints 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? Answer is complete but not entirely correct. 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 $4 per unit and increase unit sales by 25%. Net operating income increases by 27,300 Req2A Req 28 > C waw qually components be used? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 2A Req 28 Should the higher-quality components be used? Yes ONO MacBook Pro 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 Per Unit $60 39 Percent of Sales 100% 65 $ 21 35% Fixed expenses are $72,000 per month and the company is selling 4,200 units per month. Exercise 5-5 (Algo) Part 2 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Exercise 5-5 (Algo) Part 2 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? Answer is complete but not entirely correct. 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 $4 per unit and increase unit sales by 25%. Net operating income increases by 27,300 Req 2A Req 28 > 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 2A Req 28 Should the higher-quality components be used? Yes ONO