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3 ! Required information [The following information applies to the questions displayed below) 12.5 points Data for Hermann Corporation are shown below: eBook Hint Selling

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3 ! Required information [The following information applies to the questions displayed below) 12.5 points Data for Hermann Corporation are shown below: eBook Hint Selling price Variable expenses Contribution margin Per Unit $ 80 52 $ 28 Percent of Sales 100% 65 35% Print References Fixed expenses are $76,000 per month and the company is selling 4,600 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 $5 per unit and increase unit sales by 25% 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 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 $5 per unit and increase unit sales by 25%. Net operating income Req 28 > Complete this question by entering your answers in the tabs below. Req 2A Req 2B Should the higher-quality components be used? Yes No

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