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Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [Lo5-4] The following information applies to the questions displayed below] Data for Hermann

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Exercise 5-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [Lo5-4] The following information applies to the questions displayed below] Data for Hermann Corporation are shown below Selling price Variable expenses Contribution margin Per Unit s 100 61 $ 39 Percent of Sales 100% 61 39% Fixed expenses are $80,000 per month and the company is selling 3.700 units per month Exercise 5-5 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 $3 per unit and increase unit sales by 15%. 2-b. Should the higher-quality components be u sed? Complete this question by entering your answers in the tabs below Req 2A Req 2B 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 15%

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