Data for Hermann Corporation are shown below:

Per UnitPercent of SalesSelling price$ 95100%Variable expenses5760Contribution margin$ 3840%

Fixed expenses are $79,000 per month and the company is selling 3,600 units per month. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,400, the monthly sales volume increases by 100 units, and the total monthly sales increase by $9,500?

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 $3 per unit and increase unit sales by 10%.

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