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Data for Hermann Corporation are shown below: Selling price Variable expenses Per Unit $105 63 Contribution margin $ 42 Percent of Sales 100% 60 40%
Data for Hermann Corporation are shown below: Selling price Variable expenses Per Unit $105 63 Contribution margin $ 42 Percent of Sales 100% 60 40% Fixed expenses are $81,000 per month and the company is selling 3,800 units per month. 2-a. 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 20%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 28 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 20%. Net operating income by
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