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Data for Hermann Corporation are shown below: Percent of Sales 100% Selling price Variable expenses Contribution margin Per Unit $115 69 $ 46 60 405
Data for Hermann Corporation are shown below: Percent of Sales 100% Selling price Variable expenses Contribution margin Per Unit $115 69 $ 46 60 405 Fixed expenses are $83,000 per month and the company is selling 2,500 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 qualit 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 if 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 10 the questions displayed below.) Data for Hermann Corporation are shown below: 2 of 2 Selling price Variable expenses Contribution margin Per Unit $115 69 $ 46 Percent of Sales 1000 60 400 Fixed expenses are $83,000 per month and the company is selling 2,500 units per month. Book Exercise 6-5 Part 2 int 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? rences Complete this question by entering your answers in the tabs below. Req 2A Reg 28 Should the higher-quality components be used? Yes Ono Reg 2A
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