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Data for Hermann Corporation are shown below Selling price Variable expenses Contribution margin Per Unit $95 57 $ 38 Percent of Sales 100X 68 40%

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Data for Hermann Corporation are shown below Selling price Variable expenses Contribution margin Per Unit $95 57 $ 38 Percent of Sales 100X 68 40% Fixed expenses are 579,000 per month and the company is selling 3,600 units per month. Exercise 5-5 Part 2 2-a. Refer to the orginal data How much will net operating income increase (decrease) per month if the company uses higher quality components that increase the variable expense by $3 per unit and increase unit sales by 10% 2-1. Should the higher quality components be used? Complete this question by entering your answers in the tabs below. Red 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 $3 per unit and increase unit sales by 10% Nul operating income Req 28 >

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