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Che Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO6-4) The following information applies to the questions displayed below.)

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Che Required information Exercise 6-5 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: Selling price Variable expenses Contribution margin Per Unit $115 69 $ 46 Percent of Sales 1005 60 Fixed expenses are $83,000 per month and the company is selling 2,500 units per month. Exercise 6-5 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 $5 per unit and increase unit sales by 15% 2-b. Should the higher quality components be used? Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 Refer to the original data. How much will net operating income increase (decrease) per month of the company uses higher- 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 15%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Reg 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 15% Net operating income by Reg 28 > 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 15% 2.b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. ces Reg 2A Reg 28 Should the higher quality components be used Yes ONO

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