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Data for Herron Corporation are shown below: Per Unit Percent of Sales Selling price $ 75 100% Variable expenses 45 60% Contribution margin $ 30

Data for Herron Corporation are shown below:
Per Unit Percent of Sales
Selling price $ 75 100%
Variable expenses 45 60%




Contribution margin $ 30 40%









Fixed expenses are $75,000 per month and the company is selling 3,000 units per month.

2-a.

Management is considering using higher-quality components that would increase the variable cost by $3 per unit. The marketing manager believes that the higher-quality product would increase sales by 15% per month. Calculate the change intotal contribution margin.

Total contribution margin by $

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