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CHUYUUU Data for Hermann Corporation are shown below: Selling price Variablo expenses Contribution margin Per Unit $115 69 $ 46 Percent of Sales 1008 60

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CHUYUUU Data for Hermann Corporation are shown below: Selling price Variablo expenses Contribution margin Per Unit $115 69 $ 46 Percent of Sales 1008 60 400 Fixed expenses are $83,000 per month and the company is selling 2,500 units per month Exercise 5-5 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 quality components that increase the variable expense by $5 per unit and increase unit sales by 15%. Net operating income by Req2B> Percent OE Sales 1006 60 Per Unit $ 115 69 $ 46 Selling price Variable expenses Contribution margin 408 Fixed expenses are $83,000 per month and the company is selling 2,500 units per month. Exercise 5-5 Part 2 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses ! 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. Req ZA Reg 28 Should the higher-quality components be used? Yes Ono

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