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7 Required information Part 2 of 2 [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: 10 points
7 Required information Part 2 of 2 [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: 10 points Selling price Variable expenses Contribution margin Percent Per Unit of Sales 90 100% 63 70 27 30% eBook Fixed expenses are $30,000 per month and the company is selling 2,000 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 $2 per unit and increase unit sales by 10%. 2-b. Should the higher-quality components be used? References Complete this question by entering your answers in the tabs below. Reg 2A Reg 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 $2 per unit and increase unit sales by 10%. Net operating income increases by Req 2A Req 2B >
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