ces Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] [The following information applies to the questions displayed below.) Data for Hermann Corporation are shown below: Percent Per Unit of Sales Selling price Variable expenses Contribution margin $ 90 63 100% 70 $ 27 308 Fixed expenses are $78,000 per month and the company is selling 3,500 units per month. Exercise 6-5 (Algo) Part 2 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. 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 $4 per unit and increase unit sales by 20%. Net operating income by Roy 2A Req 2B > Req 2A Req 2B Should the higher-quality components be used? Yes ONO