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Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 8 5 1 0 0 % Variable expenses 5 1
Data for Hermann Corporation are shown below:
Per Unit Percent of Sales
Selling price $
Variable expenses
Contribution margin $
Fixed expenses are $ per month and the company is selling units per month.
a Refer to the original data. How much will net operating income increase decrease per month if the company uses higherquality components that increase the variable expense by $ per unit and increase unit sales by
b Should the higherquality components be used?
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