Data for Hermann Corporation are shown below Selling price Variable expenses Contribution margin Per Unit 39 S 26 Percent of Sales 100 60 40 $ 65 Fixed expenses are $73,000 per month and the company is selling 4,300 units per month 2 a Refer to the original data Management is considering using higher quality components that would increase the variable expense by $5 per unit The marketing manager believes that the higher quality product would increase sales by 25 per month Calculate the change in total contribution margin 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 Management is considering using higher quality components that would increase the variable expense by $5 per unit The marketing manager believes that the higher quality product would increase sales by 25 per month Calculate the change in total contribution margin Total contribution margin

Question

Data for Hermann Corporation are shown below  Selling price Variable expenses Contribution margin Per Unit 39 S 26 Percent of Sales 100  60 40  $ 65 Fixed expenses are $73,000 per month and the company is selling 4,300 units per month 2 a  Refer to the original data  Management is considering using higher quality components that would increase the variable expense by $5 per unit  The marketing manager believes that the higher quality product would increase sales by 25  per month  Calculate the change in total contribution margin  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  Management is considering using higher quality components that would increase the variable expense by $5 per unit  The marketing manager believes that the higher quality product would increase sales by 25  per month  Calculate the change in total contribution margin  Total contribution margin

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Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit 39 S 26 Percent of Sales 100% 60 40% $

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