Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent of Per...
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Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent of Per Unit Sales $ 70 100% 49 70 $ 21 308 Fixed expenses are $74,000 per month and the company is selling 4,400 units per month. Exercise 5-5 (Algo) 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 $4 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 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 $4 per unit and increase unit sales by 25%. Net operating income by Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Percent of Per Unit Sales $ 70 100% 49 70 $ 21 308 Fixed expenses are $74,000 per month and the company is selling 4,400 units per month. Exercise 5-5 (Algo) 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 $4 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Req 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 $4 per unit and increase unit sales by 25%. Net operating income by
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