Data for Hermann Corporation are shown below:

Mauro Products distributes a single product, a woven basket whose selling price is $15 per unit and whose variable expense is $13 per unit. The companys monthly fixed expense is $3,600. Required: 1. Calculate the companys break-even point in unit sales. 2. Calculate the companys 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.)

Fixed expenses are $70,000 per month and the company is selling 4,000 units per month.

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 25%.

2-b. Should the higher-quality components be used