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3 Part 2 of 2 Required information (The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: 10 points
3 Part 2 of 2 Required information (The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: 10 points Selling price Variable expenses Contribution margin Per Unit $ 130 79 $ 52 Percent of Sales 1001 60 400 cBook Fixed expenses are $86,000 per month and the company is selling 2,800 units per month. Hint Print 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 $6 per unit and increase unit sales by 15%. 2-b. Should the higher-quality components be used? References Complete this question by entering your answers in the tabs below. Reg 2A Reg 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 $6 per unit and increase unit sales by 15%. Net operating income increases by Req 2A Req 2B >
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