Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 140 91 $ 49 Percent of Sales 1008 65 356 Fixed expenses are $88,000 per month and the company is selling 3.000 units per month Exercise 6-5 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 $6 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. Reg 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 $6 per unit and increase unit sales by 20%. Net operating income by RA Req 2B > Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 140 91 $ 49 Percent of Sales 1008 65 358 Fixed expenses are $88,000 per month and the company is selling 3,000 units per month. Exercise 6-5 Part 2 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses components that increase the variable expense by $6 per unit and increase unit sales by 20%. 2-6. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Req 2A Reg 28 Should the higher-quality components be used? Yes ONO Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 1000 401 Sales Variable expenses Contribution margin Fixed expenses Net operating Income Amount $ 125,000 50,000 75,000 15,000 $ 60,000 604 Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 19% increase in sales 3. Construct a new contribution format Income statement for the company assuming a 19% increase in sales Complete this question by entering your answers in the tabs below. Required 1 Requirts 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 19% increase in sales. (Do not round intermediate calculations, Round your percentage answer to 2 decimal places (1.6 0.1234 should be entered a 12.34):) Net operating income DY Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format Income statement follows: Percent of Sales 1000 401 Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 125,000 50.000 75,000 15,000 $ 60,000 600 Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 19% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 19% increase in sales. Complete this question by entering your answers in the tabs below. ences Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 19% increase in sales. Engberg Company Contribution Income Statement Amount Percent of Sales % Lucido Products markets two computer games. Cloimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Het operating income Claimjumper $110,000 40.600 $ 69,400 Makeover $ 55,000 8.900 $ 46,100 Total $ 165,000 49,500 115,500 82,530 $ 32,970 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products Complete this question by entering your answers in the tabs below. Required: Required 2 Required What is the overall contribution margin (CM) ratio for the company Overall CM raba % Required 2 > Exercise Foduct Break-Even Analysis (L06-9) Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Tixed expenses Net operating income Claim jumper $110,000 40,600 $ 69,400 Makeover $ 55,000 8,900 $ 46,100 Total $ 165,000 49,500 115,500 82.530 $ 32,970 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break even point in dollar sales? 3. Prepare a contribution format income statement at the company's break even point that shows the appropriate levels of sales for the two products Complete this question by entering your answers in the tabs below. Required: Required? Required 3 What is the company's overall break-even point in dollar sales? (Do not round intermediate calculations.) Overall break-even point 10 Sales Variable expenses Contribution margin Pixed expenses Net operating income Claimjumper $110,000 40,600 $ 69,400 Makeover $ 55,000 8.900 $ 46,100 Total $ 265,000 49,500 115,500 12,530 $ 32,970 Book Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products Him Complete this question by entering your answers in the tabs below. Print .. Required 1 Required 2 Required 3 Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Lucido Products Contributions Income Statement Claimjumper Makeover Total Net operating income (oo)