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Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent of Per Unit $ 85 Sales 100% 51 60 $

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Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent of Per Unit $ 85 Sales 100% 51 60 $ 34 40% Fixed expenses are $77,000 per month and the company is selling 2,600 units per month. 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 20%. Net operating income increases by Req 2A Reg 28>

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