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Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price Variable expenses $130 1008 78 60 Contribution margin $ 52 40%

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Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price Variable expenses $130 1008 78 60 Contribution margin $ 52 40% Fixed expenses are $86,000 per month and the company is selling 2,800 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 $6 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 2A Req 2B 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 $6 per unit and increase unit sales by 15% Net operating income by

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