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5 Required information [The following information applies to the questions displayed below. Data for Hermann Corp Part 2 of 2 oration are shown below: 15

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5 Required information [The following information applies to the questions displayed below. Data for Hermann Corp Part 2 of 2 oration are shown below: 15 points Selling price Variable expenses Contribution margin Per Unit $ 85 51 s 34 Percent of Sales 100% 60 40% Skipped Fixed expenses are $77,000 per month and the company is selling 2,600 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 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 2B 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 20% Net operating in Req 2A Req 2B > 5 Required information The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Part 2 of2 15 points Selling price Variable expenses Contribution margin Per Unit $ 85 51 $ 34 Percent of Sales 1008 60 40 Skipped Fixed expenses are $77,000 per month and the company is selling 2,600 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 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below Req 2A Should the higher-quality components be used? OYes Req 2B ONo KReq 2A Req 2B

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