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4 Required information The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Part 2 of 2 Per Unit
4 Required information The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Part 2 of 2 Per Unit $ 90 1 points Selling price Variable expenses Contribution margin Percent of Sales 1008 70 308 $ 27 eBook Fixed expenses are $78,000 per month and the company is selling 3,500 units per month Print References 2-a, Refer to the original data. How much will net operating income increase (decrease) per month of the company uses higher quality components that increase the variable expense by $4 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. Reg 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 20%. Not operating income by 4 Required information The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Part 2 of 2 1 points Selling price Variable expenses Contribution margin Per Unit 5 90 63 $ 27 Percent of Sales 100 70 300 look Hint Fixed expenses are $78,000 per month and the company is selling 3,500 units per month Print Seferences 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 20%. 2-b. Should the higher quality components be used? Complete this question by entering your answers in the tabs below. Red 2A Reg 28 Should the higher-quality components be used? Yos No
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