Chapter 6 Graded Homework Saved 4 Required information 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.] Part 2 of 2 Data for Hermann Corporation are shown below: Percent of Sales 0.75 points 100% Selling price Variable expenses Contribution margin Per Unit $ 110 77 $ 33 70 Skipped 30% Fixed expenses are $82,000 per month and the company is selling 3,500 units per month. eBook Exercise 6-5 (Algo) Part 2 Hint 2-a. Refer to the original data. How much will operating income increase (decrease) per month if the company uses higher-qual 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? Print Complete this question by entering your answers in the tabs below. References 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 20%. Net operating income 21 Req 2B > Chapter 6 Graded Homework i Saved UT Exercise 6-6 (Algo) Break-Even Analysis (LO6-5] 0.75 points Mauro Products distributes a single product, a woven basket whose selling price is $22 per unit and whose variable expense is $16 per unit. The company's monthly fixed expense is $9.000. Skipped Required: 1. Calculate the company's break-even point in unit sales 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) eBook baskets Hint 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales 3. Break-even point in dollar sales baskets Print References